UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4066
Cash Assets Trust
(Exact name of Registrant as specified in charter)
380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 697-6666
Date of fiscal year end: 3/31
Date of reporting period: 3/31/04
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
SERVING INVESTORS SINCE 1984
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017
800-228-7496 * 212-697-6666
[Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing
on a twisted rope]
ANNUAL REPORT
[Logo of KPMG LLP: the letters KPMG in front of four solid rectangles]
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
Pacific Capital Funds of Cash Assets Trust:
We have audited the accompanying statements of assets and liabilities of
The Pacific Capital Funds of Cash Assets Trust (the "Trust") (comprised of
Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust,
and Pacific Capital U.S. Government Securities Cash Assets Trust) (the "Funds"),
including the statements of investments, as of March 31, 2004, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and financial highlights. Our
procedures included confirmation of securities owned as of March 31, 2004, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used, and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the Funds comprising the Trust as of March 31, 2004, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
New York, New York
May 18, 2004
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 2004
FACE
AMOUNT COMMERCIAL PAPER (33.9%) VALUE
- --------------- -------------------------------------------------------------------------------- ------------
AUTOMOTIVE (4.9%)
--------------------------------------------------------------------------------
$ 20,000,000 Toyota Motor Credit Corp., 1.02%, 04/06/04 ..................................... $ 19,997,167
------------
BANKS (4.9%)
--------------------------------------------------------------------------------
20,000,000 Societe Generale N.A., Inc., 1.08%, 04/14/04 ................................... 19,992,200
------------
BROKERAGE (4.4%)
--------------------------------------------------------------------------------
18,000,000 Goldman Sachs & Co., 1.09%, 12/20/04 ........................................... 17,856,665
------------
EDUCATION (4.9%)
--------------------------------------------------------------------------------
20,000,000 Stanford University, 1.04%, 05/19/04 ........................................... 19,972,267
------------
FINANCE (9.9%)
--------------------------------------------------------------------------------
20,000,000 American Express Credit Corp., 1.02%, 04/08/04 ................................. 19,996,033
20,000,000 General Electric Capital Corp., 1.04%, 04/05/04 ................................ 19,997,688
------------
39,993,721
------------
INSURANCE (4.9%)
--------------------------------------------------------------------------------
20,000,000 MetLife Funding, 1.02%, 04/21/04 ............................................... 19,988,667
------------
Total Commercial Paper ...................................................... 137,800,687
------------
CORPORATE NOTE (3.7%)
--------------------------------------------------------------------------------
INSURANCE (3.7%)
--------------------------------------------------------------------------------
15,000,000 Peoples Benefit Life Insurance, Variable Rate Note, 1.26%,
12/28/04 (b) ................................................................ 15,000,000
------------
U.S. GOVERNMENT AGENCIES (53.4%)
--------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (49.7%)
--------------------------------------------------------------------------------
15,000,000 1.02%, 04/07/04 ................................................................ 14,997,463
55,000,000 0.99%, 04/12/04 ................................................................ 54,983,362
24,250,000 1.03%, 04/21/04 ................................................................ 24,236,124
15,000,000 1.00%, 04/23/04 ................................................................ 14,990,879
20,000,000 1.06%, 05/19/04 ................................................................ 19,971,733
5,000,000 1.08%, 05/26/04 ................................................................ 4,991,788
30,000,000 1.17%, 06/02/04 ................................................................ 29,939,808
25,000,000 0.99%, 06/11/04 ................................................................ 24,951,188
12,615,000 3.625%, 10/15/04 ............................................................... 12,776,928
------------
201,839,273
------------
TENNESSEE VALLEY AUTHORITY (3.7%)
--------------------------------------------------------------------------------
$ 15,000,000 0.93%, 04/01/04 ................................................................ $ 15,000,000
------------
Total U.S. Government Agencies .............................................. 216,839,273
------------
REPURCHASE AGREEMENT (8.6%)
--------------------------------------------------------------------------------
35,000,000 SG Cowen, 0.97%, 04/01/04 ...................................................... 35,000,000
(Proceeds of $35,000,943 to be received at maturity), ------------
Collateral: $36,810,000 FNMA Note, due 06/09/04; Collateral
Market Value $36,720,000
SHARES INVESTMENT COMPANY (0.5%)
- --------------- --------------------------------------------------------------------------------
1,782,849 One Group Government Money Market Fund,
Institutional Shares ........................................................ 1,782,849
------------
Total Investments (Amortized Cost $406,422,809) (a) ....... 100.1% 406,422,809
Other assets less liabilities ............................. (0.1) (211,529)
----- ------------
Net assets ................................................ 100.0% $406,211,280
===== ============
(a) Cost for Federal tax purposes is identical.
(b) Illiquid security. Considered illiquid because it may not be sold, and may
be redeemed only upon at least ninety days' notice to the issuer. As this
security is a variable rate note, the rate shown represents the rate in effect
at March 31, 2004, and the maturity date reflects the next rate change date.
PORTFOLIO ABBREVIATIONS:
FNMA - Federal National Mortgage Association
See accompanying notes to financial statements.
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 2004
RATING
FACE MOODY'S/
AMOUNT MUNICIPAL BONDS (97.9%) S&P VALUE
- ------------- ---------------------------------------------------------------------- ----------- ------------
COLORADO (4.3%)
----------------------------------------------------------------------
$ 6,400,000 Colorado Housing & Financial Authority Revenue
Bonds, Class I, Series A-1, 1.03%, 10/01/30,
Weekly Reset VRDN*, SPA: FHLB ..................................... VMIG1/A-1+ $ 6,400,000
------------
HAWAII (32.8%)
----------------------------------------------------------------------
6,800,000 Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (The
Queen's Health System), Series A, 1.08%, 07/01/26,
Weekly Reset VRDN*, SPA: Bank of Nova Scotia ...................... VMIG1/A-1 6,800,000
4,965,000 Hawaii State, Housing Finance & Development Corp.
Revenue Bonds, (Affordable Rental Housing
Program), Series A, 1.15%, 07/01/27, Weekly
Reset VRDN*, LOC: Banque Nationale de Paris ....................... VMIG1/NR 4,965,000
Honolulu City & County, HI General Obligation
Bonds, Series A, Weekly Reset VRDN*,
LOC: Landesbank Hessen-Thuringen Girozentrale
800,000 1.00%, 01/01/05 ................................................... VMIG1/A-1+ 800,000
3,000,000 1.00%, 01/01/06 ................................................... VMIG1/A-1+ 3,000,000
5,800,000 1.00%, 01/01/07 ................................................... VMIG1/A-1+ 5,800,000
2,150,000 1.00%, 01/01/10 ................................................... VMIG1/A-1+ 2,150,000
5,900,000 1.00%, 01/01/12 ................................................... VMIG1/A-1+ 5,900,000
1,995,000 1.00%, 01/01/13 ................................................... VMIG1/A-1+ 1,995,000
2,020,000 1.00%, 01/01/15 ................................................... VMIG1/A-1+ 2,020,000
5,645,000 1.00%, 01/01/17 ................................................... VMIG1/A-1+ 5,645,000
1,645,000 1.00%, 01/01/19 ................................................... VMIG1/A-1+ 1,645,000
1,400,000 1.00%, 01/01/20 ................................................... VMIG1/A-1+ 1,400,000
1,600,000 Honolulu City & County, HI General Obligation Bonds,
Series B, 1.00%, 01/01/05, Weekly Reset VRDN*,
LOC: Landesbank Hessen-Thuringen Girozentrale ..................... VMIG1/A-1+ 1,600,000
5,000,000 Honolulu City & County, HI Multifamily Housing
Revenue Bonds (Moanalua Hillside Apartments),
AMT, 1.07%, 09/15/32, Weekly Reset VRDN*,
LOC: FNMA ......................................................... NR/A-1+ 5,000,000
------------
48,720,000
------------
IDAHO (2.4%)
----------------------------------------------------------------------
$ 3,600,000 Idaho Health Facilities Authority Revenue Bonds
(St. Lukes Regional Medical Center Project),
1.12%, 05/01/22, Daily Reset VRDN*,
LOC: Harris Trust & Savings Bank .................................. VMIG1/NR $ 3,600,000
------------
ILLINOIS (8.5%)
----------------------------------------------------------------------
3,000,000 Chicago, IL General Obligation Bonds, Series B, 1.04%,
01/01/37, Weekly Reset VRDN*, FGIC Insured ........................ VMIG1/A-1+ 3,000,000
5,000,000 Chicago, IL Metropolitan Water Reclamation
District-Greater Chicago General Obligation
Bonds, Series A, 1.00%, 12/01/31, Weekly Reset
VRDN*, SPA: Bank of America ....................................... VMIG1/A-1+ 5,000,000
4,600,000 Illinois Development Finance Authority Revenue
Bonds (YMCA of Metro Chicago Project), 1.12%,
06/01/29, Daily Reset VRDN*, LOC: Harris
Trust & Savings Bank .............................................. NR/A-1+ 4,600,000
------------
12,600,000
------------
INDIANA (2.6%)
----------------------------------------------------------------------
3,780,000 Indianapolis, IN Economic Development Revenue
Bonds (Jewish Federation Campus), 1.03%, 04/01/05,
Weekly Reset VRDN*, LOC: Fifth Third Bank ......................... VMIG1/NR 3,780,000
------------
LOUISIANA (0.7%)
----------------------------------------------------------------------
1,000,000 St. Charles Parish, LA Pollution Control Revenue
Bonds (Shell Oil Co. Project), Series A-AMT,
1.15%, 10/01/22, Daily Reset VRDN* ................................ VMIG1/A-1+ 1,000,000
------------
MASSACHUSETTS (0.7%)
----------------------------------------------------------------------
1,100,000 Massachusetts State, Health & Educational Facilities
Authority Revenue Bonds (Wellesley College),
Series G, 1.08%, 07/01/39, Daily Reset VRDN*,
SPA: JP Morgan Chase Bank ......................................... VMIG1/A-1+ 1,100,000
------------
MICHIGAN (4.6%)
----------------------------------------------------------------------
5,410,000 Eastern Michigan University, MI University Revenue
Bonds, 1.12%, 06/01/27, Daily Reset VRDN*,
FGIC Insured ...................................................... NR/A-1+ 5,410,000
$ 1,400,000 Northern Michigan University Revenue Bonds, 1.12%,
06/01/31, Daily Reset VRDN*, FGIC Insured ......................... VMIG1/A-1+ $ 1,400,000
------------
6,810,000
------------
MINNESOTA (3.9%)
----------------------------------------------------------------------
3,775,000 Cohasset, MN Revenue Bonds (Minnesota Power &
Light Co. Project), Series A, 1.12%, 06/01/20, Daily
Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 3,775,000
200,000 Cohasset, MN Revenue Bonds (Minnesota Power &
Light Co. Project), Series B, 1.12%, 06/01/13, Daily
Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 200,000
1,790,000 Cohasset, MN Revenue Bonds (Minnesota Power &
Light Co. Project), Series D, 1.12%, 12/01/07, Daily
Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 1,790,000
------------
5,765,000
------------
MISSOURI (13.5%)
----------------------------------------------------------------------
5,935,000 Kansas City, MO Industrial Development Authority
Revenue Bonds, (Ewing Marion Kaufman
Foundation), 1.12%, 04/01/27, Daily Reset VRDN* ................... NR/A-1+ 5,935,000
600,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (St. Louis University),
Series A, 1.17%, 10/01/09, Daily Reset VRDN*,
SPA: Bank of America N.A .......................................... VMIG1/A-1+ 600,000
5,355,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (St. Louis University),
Series B, 1.17%, 10/01/24, Daily Reset VRDN*,
SPA: Bank of America N.A .......................................... VMIG1/A-1+ 5,355,000
2,000,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (Washington University),
Series C, 1.10%, 9/01/30, Daily Reset VRDN*, SPA:
JP Morgan Chase Bank .............................................. VMIG1/A-1+ 2,000,000
1,200,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (Washington University),
Series D, 1.10%, 9/01/30, Daily Reset VRDN*,
SPA: JP Morgan Chase Bank ......................................... VMIG1/A-1+ 1,200,000
$ 5,000,000 University of Missouri, Curators of the University of
Missouri System Facilities Revenue Bonds, Series
A, 1.12%, 11/01/32, Daily Reset VRDN* ............................. VMIG1/A-1+ $ 5,000,000
------------
20,090,000
------------
MONTANA (3.8%)
----------------------------------------------------------------------
5,620,000 Montana State, Health Facilities Authority Revenue
Bonds, Series A, 1.02%, 12/01/15, Weekly Reset
VRDN*, FGIC Insured, SPA: Wells Fargo ............................. VMIG1/A-1+ 5,620,000
------------
NEW YORK (4.3%)
----------------------------------------------------------------------
6,430,000 New York, NY City Transitional Finance Authority
Revenue Bonds, Series 3, 1.12%, 11/01/22, Daily
Reset VRDN*, SPA: Bank of New York ................................ VMIG1/A-1+ 6,430,000
------------
NORTH CAROLINA (1.8%)
----------------------------------------------------------------------
1,150,000 Durham, NC General Obligation Bonds (Public
Improvement Project), Weekly Reset VRDN*, SPA:
Wachovia Bank of North Carolina 1.06%, 02/01/09 ................... VMIG1/A-1 1,150,000
1,475,000 1.06%, 02/01/13 ................................................... 1,475,000
------------
2,625,000
------------
OHIO (2.6%)
----------------------------------------------------------------------
3,880,000 Ohio Housing Finance Agency Mortgage Revenue
Bonds (Residential Mortgage), Series E-AMT, 1.07%,
09/01/34, Weekly Reset VRDN*, SPA: FHLB ........................... VMIG1/NR 3,880,000
------------
PENNSYLVANIA (3.5%)
----------------------------------------------------------------------
5,200,000 Philadelphia, PA Hospitals & Higher Education
Facilities Authority Revenue Bonds (Children's
Hospital Project), Series A, 1.12%, 02/15/14,
Daily Reset VRDN*, SPA: JP Morgan Chase Bank ...................... VMIG1/A-1+ 5,200,000
------------
TEXAS (1.5%)
----------------------------------------------------------------------
2,200,000 West Side Calhoun County, TX Sewer & Solid Waste
Disposal Revenue Bonds (BP Chemicals, Inc. Project),
AMT, 1.15%, 04/01/31, Daily Reset VRDN* ........................... P-1/A-1+ 2,200,000
------------
UTAH (2.3%)
----------------------------------------------------------------------
$ 3,450,000 University of Utah, Auxiliary & Campus Facilities
Revenue Bonds, Series A, 1.03%, 04/01/27, Weekly
Reset VRDN*, SPA: Bank of Nova Scotia ............................. VMIG1/A-1 $ 3,450,000
------------
VIRGINIA (4.1%)
----------------------------------------------------------------------
6,000,000 University of Virginia Revenue Bonds, Series A,
0.98%, 06/01/34, Weekly Reset VRDN* ............................... VMIG1/A-1+ 6,000,000
------------
Total Municipal Bonds ........................................... 145,270,000
------------
SHARES INVESTMENT COMPANY (2.1%)
- ------------- ----------------------------------------------------------------------
3,150,000 Dreyfus Tax Exempt Cash Management Fund,
Institutional Shares .............................................. 3,150,000
------------
Total Investments (Amortized Cost
$148,420,000) (a) ........................................... 100.0% 148,420,000
Other assets less liabilities .................................. 0.0 25,756
------ ------------
Net Assets ..................................................... 100.0% $148,445,756
====== ============
* Variable rate demand notes (VRDNs) are payable upon demand within the same day
for securities with daily liquidity or seven days for securities with weekly
liquidity.
(a) Cost for Federal tax purposes is identical.
PORTFOLIO ABBREVIATIONS:
AMT - Alternative Minimum Tax
FGIC - Financial Guaranty Insurance Corporation
FHLB - Federal Home Loan Bank
FNMA - Federal National Mortgage Association
LOC - Letter of Credit
SPA - Standby Bond Purchase Agreement
VRDN - Variable Rate Demand Note
See accompanying notes to financial statements.
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 2004
FACE
AMOUNT U.S. GOVERNMENT AGENCIES (99.2%) VALUE
- --------------- ------------------------------------------------------ ------------
FEDERAL FARM CREDIT BANK (12.7%)
------------------------------------------------------
$ 95,000,000 0.97%, 04/01/04 ...................................... $ 95,000,000
12,000,000 1.02%, 10/12/04 ...................................... 11,934,040
------------
106,934,040
------------
FEDERAL HOME LOAN BANK (84.7%)
------------------------------------------------------
60,000,000 1.02%, 04/07/04 ...................................... 59,989,850
85,000,000 0.99%, 04/12/04 ...................................... 84,974,287
70,000,000 0.97%, 04/14/04 ...................................... 69,975,354
50,000,000 0.98%, 04/16/04 ...................................... 49,979,583
25,000,000 1.03%, 04/21/04 ...................................... 24,985,694
50,000,000 1.00%, 04/23/04 ...................................... 49,969,597
40,000,000 0.98%, 05/05/04 ...................................... 39,962,978
50,000,000 0.98%, 05/12/04 ...................................... 49,944,194
57,000,000 1.00%, 05/19/04 ...................................... 56,923,707
57,271,000 0.98%, 05/21/04 ...................................... 57,193,048
56,328,000 1.04%, 05/26/04 ...................................... 56,238,392
50,000,000 0.98%, 05/28/04 ...................................... 49,922,417
35,200,000 1.17%, 06/02/04 ...................................... 35,129,375
25,000,000 0.99%, 06/11/04 ...................................... 24,951,188
------------
710,139,664
------------
TENNESSEE VALLEY AUTHORITY (1.8%)
------------------------------------------------------
15,000,000 0.93%, 04/01/04 ...................................... 15,000,000
------------
Total U.S. Government Agencies .................... 832,073,704
------------
SHARES INVESTMENT COMPANY (0.9%)
- --------------- ------------------------------------------------------
7,128,747 One Group Government Money Market Fund,
Institutional Shares .............................. 7,128,747
------------
Total Investments
(Amortized Cost $839,202,451) (a) ... 100.1% 839,202,451
Other assets less liabilities ......... (0.1) (659,859)
------ ------------
Net Assets ............................ 100.0% $838,542,592
====== ============
(a) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2004
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
------------- ------------- -------------
ASSETS:
Investments at value and amortized cost (note 2) ................. $ 406,422,809 $ 148,420,000 $ 839,202,451
Cash ............................................................. - 3,061 --
Interest receivable .............................................. 229,186 161,382 8,161
Other assets ..................................................... 3,999 1,541 7,091
------------- ------------- -------------
Total Assets .................................................. 406,655,994 148,585,984 839,217,703
------------- ------------- -------------
LIABILITIES:
Dividends payable ................................................ 283,458 87,360 486,125
Adviser and Administrator fees payable ........................... 41,435 3,645 23,661
Distribution fees payable ........................................ 26,712 10,698 94,695
Accrued expenses ................................................. 93,109 38,525 70,630
------------- ------------- -------------
Total Liabilities ............................................. 444,714 140,228 675,111
------------- ------------- -------------
NET ASSETS ....................................................... $ 406,211,280 $ 148,445,756 $ 838,542,592
============= ============= =============
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share ...................................... $ 4,061,981 $ 1,484,436 $ 8,384,742
Additional paid-in capital ....................................... 402,135,861 147,048,680 830,089,587
Undistributed (overdistributed) net investment income ............ 13,438 (87,360) 68,263
------------- ------------- -------------
$ 406,211,280 $ 148,445,756 $ 838,542,592
============= ============= =============
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets .................................................... $ 287,029,261 $ 98,783,759 $ 263,464,681
============= ============= =============
Shares outstanding ............................................ 287,248,053 98,782,301 263,435,345
============= ============= =============
Net asset value per share ..................................... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Service Shares Class:
Net Assets .................................................... $ 119,182,019 $ 49,661,997 $ 575,077,911
============= ============= =============
Shares outstanding ............................................ 118,950,017 49,661,274 575,038,846
============= ============= =============
Net asset value per share ..................................... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2004
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
----------- ----------- -----------
INVESTMENT INCOME:
Interest income ............................................... $ 5,071,964 $ 1,601,357 $ 8,186,966
----------- ----------- -----------
EXPENSES:
Investment Adviser fees (note 3) .............................. 1,637,319 464,121 2,490,502
Administrator fees (note 3) ................................... 644,444 167,539 571,912
Distribution fees (note 3) .................................... 303,195 130,457 1,190,454
Trustees' fees and expenses ................................... 107,971 49,626 124,942
Legal fees .................................................... 55,400 22,874 84,685
Shareholders' reports ......................................... 41,935 11,106 38,236
Insurance ..................................................... 41,747 14,966 69,219
Fund accounting fees .......................................... 33,020 33,742 32,889
Auditing and tax fees ......................................... 18,850 19,475 17,850
Transfer and shareholder servicing agent fees ................. 11,572 12,338 11,217
Custodian fees ................................................ 5,727 8,900 5,380
Registration fees and dues .................................... 4,889 4,609 16,154
Miscellaneous ................................................. 12,093 6,827 27,797
----------- ----------- -----------
Total expenses ................................................ 2,918,162 946,580 4,681,237
Advisory fees contractual reduction (note 3) .................. (1,184,109) (401,358) (2,138,917)
Administrative fees contractual reduction (note 3) ............ (466,062) (144,883) (491,175)
Expenses paid indirectly (note 5) ............................. -- -- (4,403)
----------- ----------- -----------
Net expenses .................................................. 1,267,991 400,339 2,046,742
----------- ----------- -----------
Net investment income ............................................ 3,803,973 1,201,018 6,140,224
Net realized gain (loss) from securities transactions ............ 1,319 38 421
----------- ----------- -----------
Net change in net assets resulting from operations ............... $ 3,805,292 $ 1,201,056 $ 6,140,645
=========== =========== ===========
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CASH FUND TAX-FREE FUND
---------------------------------- ----------------------------------
Year Ended Year Ended Year Ended Year Ended
March 31, 2004 March 31, 2003 March 31, 2004 March 31, 2003
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ................. $ 3,803,973 $ 6,102,262 $ 1,201,018 $ 1,783,725
Net realized gain (loss)
from securities transactions ....... 1,319 5,968 38 12
--------------- --------------- --------------- ---------------
Change in net assets
resulting from operations .......... 3,805,292 6,108,230 1,201,056 1,783,737
--------------- --------------- --------------- ---------------
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares .................... (3,014,705) (4,649,971) (891,803) (1,316,278)
Service Shares ..................... (789,268) (1,452,291) (309,215) (466,859)
--------------- --------------- --------------- ---------------
Total dividends to shareholders
from net investment income ......... (3,803,973) (6,102,262) (1,201,018) (1,783,137)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares .................... 710,757,056 880,694,410 127,920,769 163,052,761
Service Shares ..................... 356,252,712 252,007,742 63,986,710 56,481,358
--------------- --------------- --------------- ---------------
1,067,009,768 1,132,702,152 191,907,479 219,534,119
--------------- --------------- --------------- ---------------
Reinvested dividends:
Original Shares .................... 61,263 86,494 69,733 170,364
Service Shares ..................... 802,624 1,514,672 320,397 468,256
--------------- --------------- --------------- ---------------
863,887 1,601,166 390,130 638,620
--------------- --------------- --------------- ---------------
Cost of shares redeemed:
Original Shares .................... (784,672,808) (873,207,779) (159,333,530) (133,496,270)
Service Shares ..................... (361,048,456) (275,974,181) (70,987,619) (52,944,249)
--------------- --------------- --------------- ---------------
(1,145,721,264) (1,149,181,960) (230,321,149) (186,440,519)
--------------- --------------- --------------- ---------------
Change in net assets
from capital share transactions .... (77,847,609) (14,878,642) (38,023,540) 33,732,220
--------------- --------------- --------------- ---------------
Total change in net assets ............ (77,846,290) (14,872,674) (38,023,502) 33,732,820
NET ASSETS:
Beginning of period ................. 484,057,570 498,930,244 186,469,258 152,736,438
--------------- --------------- --------------- ---------------
End of period ....................... $ 406,211,280 $ 484,057,570 $ 148,445,756 $ 186,469,258
=============== =============== =============== ===============
GOVERNMENT FUND
----------------------------------
Year Ended Year Ended
March 31, 2004 March 31, 2003
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ................... $ 6,140,224 $ 8,345,327
Net realized gain (loss)
from securities transactions ......... 421 218
--------------- ---------------
Change in net assets
resulting from operations ............ 6,140,645 8,345,545
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares ...................... (2,775,205) (3,725,589)
Service Shares ....................... (3,365,022) (4,619,738)
--------------- ---------------
Total dividends to shareholders
from net investment income ........... (6,140,227) (8,345,327)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares ...................... 1,035,054,356 759,927,968
Service Shares ....................... 1,762,487,853 1,404,544,075
--------------- ---------------
2,797,542,209 2,164,472,043
--------------- ---------------
Reinvested dividends:
Original Shares ...................... 46,240 52,314
Service Shares ....................... 3,380,896 4,740,217
--------------- ---------------
3,427,136 4,792,531
--------------- ---------------
Cost of shares redeemed:
Original Shares ...................... (1,041,701,880) (795,938,638)
Service Shares ....................... (1,638,518,517) (1,418,737,480)
--------------- ---------------
(2,680,220,397) (2,214,676,118)
--------------- ---------------
Change in net assets
from capital share transactions ...... 120,748,948 (45,411,544)
--------------- ---------------
Total change in net assets .............. 120,749,366 (45,411,326)
NET ASSETS:
Beginning of period .................. 717,793,226 763,204,552
--------------- ---------------
End of period ........................ $ 838,542,592 $ 717,793,226
=============== ===============
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Cash Assets Trust (the "Trust") was organized on May 7, 1984 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end investment company.
The Trust consists of the following three investment portfolios (referred
to individually as a "Fund" and collectively as the "Funds"): Pacific Capital
Cash Assets Trust ("Cash Fund") (a diversified portfolio which commenced
operations on December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust
("Tax-Free Fund") (a non-diversified portfolio which commenced operations on
April 4, 1989), and Pacific Capital U.S. Government Securities Cash Assets Trust
("Goverment Fund") (a diversified portfolio which commenced operations on April
4, 1989). The Trust is authorized to issue for each Fund an unlimited number of
shares of $0.01 par value in two classes of shares; the Original Shares Class
and the Service Shares Class. The Original Shares Class includes all currently
outstanding shares of each Fund that were issued prior to January 20, 1995, the
date on which the Capital structure was changed to include two classes rather
than one. The two classes of shares are substantially identical, except that
Service Shares bear the fees that are payable under the Trust's Distribution
Plan.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are in
conformity with U.S. generally accepted accounting principles.
a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the
amortized cost method permitted in accordance with Rule 2a-7 under the
1940 Act, which, after considering accrued interest thereon, approximates
market. Under this method, a portfolio security is valued at cost adjusted
for amortization of premiums and accretion of discounts. Amortization of
premiums and accretion of discounts are included in interest income.
b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses
from securities transactions are reported on the identified cost basis.
Interest income is recorded daily on the accrual basis and is adjusted for
amortization of premiums and accretion of discounts as discussed in the
preceding paragraph.
c) DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES: The net
asset value per share for each class of the Funds' shares is determined as
of 4:00 p.m. New York time on each day that the New York Stock Exchange
and the custodian are open by dividing the value of the assets of the Fund
allocable to that class less Fund liabilities allocable to the class and
any liabilities charged directly to the class, exclusive of surplus, by
the total number of shares of the class outstanding.
Investment income, realized and unrealized gains and losses, if any, and
expenses other than class specific expenses, are allocated daily to each
class of shares based upon the proportion of net assets of each class.
Class specific expenses are borne by the affected class. Service fee
payments under Rule 12b-1 are borne solely by and charged to the Service
Shares based on net assets of that class.
d) FEDERAL INCOME TAXES: It is the policy of each Fund to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. Each
Fund intends to make distributions of income and securities profits
sufficient to relieve it from all, or substantially all, Federal income
and excise taxes.
e) REPURCHASE AGREEMENTS: It is each Fund's policy to monitor closely the
creditworthiness of all firms with which it enters into repurchase
agreements, and to take possession of, or otherwise perfect its security
interest in, securities purchased under agreements to resell. The
securities purchased under agreements to resell are marked to market every
business day in order to compare the value of the collateral to the amount
of the "loan" (repurchase agreements being defined as "loans" in the 1940
Act), including the accrued interest earned thereon. If the value of the
collateral is less than 102% of the loan plus the accrued interest
thereon, additional collateral is required from the borrower.
f) USE OF ESTIMATES: The preparation of financial statements in conformity
with U.S. generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
3. FEES AND RELATED PARTY TRANSACTIONS
a) MANAGEMENT ARRANGEMENTS:
The Asset Management Group of Bank of Hawaii (the "Adviser"), serves as
Investment Adviser to the Funds. In this role, under Investment Advisory
Agreements, the Adviser supervises the Funds' investments and provides various
services. Effective January 1, 2004, Aquila Management Corporation, assigned its
Administration Agreements to its wholly-owned subsidiary, Aquila Investment
Management LLC (the "Administrator"), which will continue the administration of
the Funds. The transfer was made for reasons of corporate and tax planning and
will have no effect on the management of the Funds or the fees being paid. The
Administrator provides all administrative services to the Funds other than those
relating to the investment portfolios. Specific details as to the nature and
extent of the services provided by the Adviser and the Administrator are more
fully defined in the Prospectus and Statement of Additional Information of the
Funds. For their services, the Adviser and the Administrator each receive a fee
which is payable monthly and computed as of the close of business each day on
the net assets of each Fund at the following annual rates:
Pacific Capital Cash Assets Trust - On net assets up to $325
million, the fee is paid to the Adviser and the Administrator at the
annual rate of 0.33% and 0.17%, respectively, and on net assets
above that amount at the annual rate of 0.43% and 0.07%,
respectively.
Pacific Capital Tax-Free Cash Assets Trust - On net assets up to $95
million, the fee is paid to the Adviser and the Administrator at the
annual rate of 0.27% and 0.13%, respectively, and on net assets
above that amount at the annual rate of 0.33% and 0.07%,
respectively.
Pacific Capital U.S. Government Securities Cash Assets Trust - On
net assets up to $60 million, the fee is paid to the Adviser and the
Administrator at the annual rate of 0.27% and 0.13%, respectively,
and on net assets above that amount at the annual rate of 0.33% and
0.07%, respectively.
The Adviser and the Administrator each agrees that the above fees shall be
reduced, but not below zero, by an amount equal to its proportionate share
(determined on the basis of the respective fees computed as described above) of
the amount, if any, by which the total expenses of a Fund in any fiscal year,
exclusive of taxes, interest and brokerage fees, shall exceed the lesser of (i)
2.5% of the first $30 million of average annual net assets of the Fund plus 2%
of the next $70 million of such assets and 1.5% of its average annual net assets
in excess of $100 million, or (ii) 25% of the Fund's total annual investment
income. The payment of the above fees at the end of any month will be reduced or
postponed so that at no time will there be any accrued but unpaid liability
under this expense limitation. For the period April 1, 2002 through March 31,
2004, advisory and administrative fees have been reduced by a contractual
reduction of fees (see ii above) due to a low interest rate environment.
Advisory and administrative fees in a given fiscal year may be recouped prior to
the end of such year if interest rates were to increase. Contractual reduction
of fees, if any, is calculated on a fiscal year basis.
For the year ended March 31, 2004:
Pacific Capital Cash Assets Trust incurred advisory and
administration fees of $1,637,319 and $644,444; due to the expense
limitation, such fees were reduced by $1,184,109 and $466,062,
respectively.
Pacific Capital Tax-Free Cash Assets Trust incurred advisory and
administration fees of $464,121 and $167,539; due to the expense
limitation, such fees were reduced by $401,358 and $144,883,
respectively.
Pacific Capital U.S. Government Securities Cash Assets Trust
incurred advisory and administration fees of $2,490,502 and
$571,912; due to the expense limitation, such fees were reduced by
$2,138,917 and $491,175, respectively.
b) DISTRIBUTION AND SERVICE FEES:
Each Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. A part of the Plan authorizes payment of certain
distribution or service fees by the Service Shares Class of the Fund. Such
payments are made to "Designated Payees" - broker-dealers, other financial
institutions and service providers who have entered into appropriate agreements
with the Distributor and which have rendered assistance in the distribution
and/or retention of the Funds' Service Shares or in the servicing of Service
Share accounts. The total payments under this part of a Fund's Plan may not
exceed 0.25% of its average annual assets represented by Service Shares. No such
payments will be made by the Original Share Class. Specific details about each
Plan are more fully defined in the Prospectus and Statement of Additional
Information of the Funds.
Under a Distribution Agreement, Aquila Distributors, Inc. (the
"Distributor") serves as the exclusive distributor of the Funds' shares. No
compensation or fees are paid to the Distributor for such share distribution.
c) OTHER RELATED PARTY TRANSACTIONS:
For the year ended March 31, 2004, the following amounts were accrued for
legal fees: Cash Fund $55,400; Tax-Free Fund $22,874; Government Fund $84,685.
Of these amounts, $53,160, $21,834 and $80,109, respectively, were allocable to
Hollyer Brady Smith &Hines LLP, counsel to the Fund, for legal services in
conjunction with the Fund's ongoing operations. The Secretary of the Fund is a
Partner of Hollyer Brady Smith & Hines LLP.
4. GUARANTEES OF CERTAIN COMMERCIAL PAPER
Various banks and other institutions have issued irrevocable letters of
credit or guarantees for the benefit of the holders of certain commercial paper.
Payment at maturity of principal and interest of certain commercial paper held
by the Funds is supported by such letters of credit or guarantees.
5. EXPENSES
The Funds have negotiated an expense offset arrangement with their
custodian, wherein they receive credit toward the reduction of custodian fees
and other expenses whenever there are uninvested cash balances. The Statements
of Operations reflect the total expenses before any offset, the amount of offset
and the net expenses. It is the general intention of the Funds to invest, to the
extent practicable, some or all of cash balances in income-producing assets
rather than leave cash on deposit.
6. PORTFOLIO ORIENTATION
Since Pacific Capital Tax-Free Cash Assets Trust has a significant portion
of its investments in obligations of issuers within Hawaii, it is subject to
possible risks associated with economic, political, or legal developments or
industrial or regional matters specifically affecting Hawaii and whatever
effects these may have upon Hawaii issuers' ability to meet their obligations.
7. DISTRIBUTIONS
The Funds declare dividends daily from net investment income and make
payments monthly in additional shares at the net asset value per share, in cash,
or a combination of both, at the shareholder's option.
The tax character of distributions paid during 2004 and 2003 were as follows:
CASH FUND TAX-FREE FUND GOVERNMENT FUND
-------------------------- -------------------------- --------------------------
2004 2003 2004 2003 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
Net tax-exempt income .............. $ -- $ -- $1,201,018 $1,772,705 $ -- $ --
Ordinary income .................... 3,508,396 6,248,680 37,174 12 5,586,258 8,577,138
Capital gain ....................... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total .............................. $3,508,396 $6,248,680 $1,238,192 $1,772,717 $5,586,258 $8,577,138
========== ========== ========== ========== ========== ==========
As of March 31, 2004, the components of distributable earning on a tax
basis were as follows:
TAX-FREE GOVERNMENT
CASH FUND FUND FUND
--------- --------- ----------
Undistributed ordinary income .......................... $ 296,896 $ -- $ 554,387
Undistributed tax-exempt income ........................ -- -- --
--------- --------- ---------
$ 296,896 $ -- $ 554,387
--------- --------- ---------
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the statements of assets and liabilities, as a result of certain
differences in the computation of net investment income and net realized capital
gains under federal income tax rules and regulations versus generally accepted
accounting principles, a reclassification has been made to increase (decrease)
undistributed net investment income (distributions in excess of net investment
income), accumulated net realized gain (loss) on investments and additional
paid-in capital for the Funds as follows:
TAX-FREE GOVERNMENT
CASH FUND FUND FUND
-------- -------- ----------
Paid-in Capital ............................................... $ -- $(37,136) $ --
Undistributed net investment income ........................... 1,319 37,174 421
Accumulated net realized gain (loss) .......................... (1,319) (38) (421)
These reclassifications are primarily due to taxable distributions in
excess of net investment income for the Tax-Free Fund and dividend
redesignations for the Cash Fund and the Government Fund. Net assets are not
affected by these changes.
FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED)
This information is presented in order to comply with a requirement of the
Internal Revenue Code of 1986, as amended. NO CURRENT ACTION ON THE PART OF
SHAREHOLDERS IS REQUIRED.
For the fiscal year ended March 31, 2004, $1,201,018 of dividends paid by the
Tax-Free Fund were exempt-interest dividends. For the Cash Fund and the
Government Fund all of the dividends paid were ordinary dividend income.
Prior to January 31, 2004, shareholders were mailed IRS Form 1099-DIV
which contained information on the status of distributions paid for the 2003
CALENDAR YEAR.
PACIFIC CAPITAL
CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period ......... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ..................... 0.01 0.01 0.03 0.06 0.05
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ...... (0.01) (0.01) (0.03) (0.06) (0.05)
------ ------ ------ ------ ------
Net asset value, end of period ............... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return ................................. 0.90% 1.35% 2.52% 5.90% 4.89%
Ratios/supplemental data
Net assets, end of period (in millions) ... $287 $361 $353 $364 $513
Ratio of expenses to average net assets ... 0.21% 0.36% 0.58% 0.57% 0.56%
Ratio of net investment income to
average net assets ..................... 0.90% 1.34% 2.51% 5.77% 4.80%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ... 0.57% 0.58% - - -
Ratio of net investment income to
average net assets ..................... 0.54% 1.12% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ... 0.21% 0.36% 0.57% 0.57% 0.56%
SERVICE SHARES
-----------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period ......... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ..................... 0.01 0.01 0.02 0.05 0.05
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ...... (0.01) (0.01) (0.02) (0.05) (0.05)
------ ------ ------ ------ ------
Net asset value, end of period ............... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return ................................. 0.65% 1.09% 2.27% 5.63% 4.63%
Ratios/supplemental data
Net assets, end of period (in millions) ... $119 $123 $146 $221 $174
Ratio of expenses to average net assets ... 0.46% 0.61% 0.83% 0.82% 0.81%
Ratio of net investment income to
average net assets ..................... 0.65% 1.10% 2.36% 5.49% 4.53%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ... 0.82% 0.83% - - -
Ratio of net investment income to
average net assets ..................... 0.29% 0.88% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ... 0.46% 0.61% 0.82% 0.82% 0.81%
See accompanying notes to financial statements.
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
--------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.01 0.01 0.02 0.04 0.03
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income .......... (0.01) (0.01) (0.02) (0.04) (0.03)
------ ------ ------ ------ ------
Net asset value, end of period .................... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return 0.84% 1.15% 2.00% 3.58% 2.95%
Ratios/supplemental data
Net assets, end of period (in millions) ....... $99 $130 $100 $101 $100
Ratio of expenses to average net assets ....... 0.17% 0.28% 0.51% 0.53% 0.52%
Ratio of net investment income to
average net assets ......................... 0.84% 1.13% 1.94% 3.50% 2.93%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ....... 0.52% 0.50% - - -
Ratio of net investment income to
average net assets ......................... 0.50% 0.90% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 0.17% 0.27% 0.51% 0.53% 0.52%
SERVICE SHARES
--------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.01 0.01 0.02 0.03 0.03
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income .......... (0.01) (0.01) (0.02) (0.03) (0.03)
------ ------ ------ ------ ------
Net asset value, end of period .................... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return 0.59% 0.90% 1.75% 3.32% 2.70%
Ratios/supplemental data
Net assets, end of period (in millions) ....... $50 $56 $52 $54 $51
Ratio of expenses to average net assets ....... 0.42% 0.53% 0.77% 0.78% 0.77%
Ratio of net investment income to
average net assets ......................... 0.59% 0.89% 1.77% 3.26% 2.66%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ....... 0.77% 0.76% - - -
Ratio of net investment income to
average net assets ......................... 0.25% 0.66% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 0.42% 0.52% 0.77% 0.78% 0.77%
See accompanying notes to financial statements.
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
--------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.01 0.01 0.03 0.06 0.05
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income .......... (0.01) (0.01) (0.03) (0.06) (0.05)
------ ------ ------ ------ ------
Net asset value, end of period .................... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return ...................................... 0.96% 1.34% 2.73% 5.88% 4.83%
Ratios/supplemental data
Net assets, end of period (in millions) ....... $263 $270 $306 $151 $166
Ratio of expenses to average net assets ....... 0.11% 0.25% 0.45% 0.47% 0.49%
Ratio of net investment income to
average net assets ......................... 0.96% 1.34% 2.47% 5.73% 4.73%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ....... 0.46% 0.46% - - -
Ratio of net investment income to
average net assets ......................... 0.62% 1.12% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 0.11% 0.24% 0.45% 0.47% 0.49%
SERVICE SHARES
--------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------
2004 2003 2002 2001 2000
------ ------ ------ ------ ------
Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ......................... 0.01 0.01 0.02 0.05 0.04
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income .......... (0.01) (0.01) (0.02) (0.05) (0.04)
------ ------ ------ ------ ------
Net asset value, end of period .................... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total return ...................................... 0.71% 1.09% 2.48% 5.62% 4.56%
Ratios/supplemental data
Net assets, end of period (in millions) ....... $575 $448 $457 $332 $293
Ratio of expenses to average net assets ....... 0.36% 0.49% 0.70% 0.72% 0.74%
Ratio of net investment income to
average net assets ......................... 0.71% 1.08% 2.39% 5.47% 4.50%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ....... 0.71% 0.71% - - -
Ratio of net investment income to
average net assets ......................... 0.36% 0.86% - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ....... 0.36% 0.49% 0.70% 0.72% 0.74%
See accompanying notes to financial statements.
ADDITIONAL INFORMATION (UNAUDITED)
TRUSTEES AND OFFICERS(1)
NUMBER OF
POSITIONS PORTFOLIOS OTHER DIRECTORSHIPS
HELD WITH IN FUND HELD BY TRUSTEE
NAME, TRUST AND PRINCIPAL COMPLEX (THE POSITION HELD IS
ADDRESS(2) LENGTH OF OCCUPATION(S) OVERSEEN A DIRECTORSHIP UNLESS
AND DATE OF BIRTH SERVICE(3) DURING PAST 5 YEARS BY TRUSTEE INDICATED OTHERWISE.)
- ----------------- ---------- ------------------- ---------- ---------------------
INTERESTED TRUSTEES(4)
Lacy B. Herrmann Founder, Founder, Chief Exective Officer and 11 Director or trustee,
New York, NY Trustee since Chairman of the Board, Aquila Management Pimco Advisors VIT,
(05/12/29) 1984, and Corporation, the sponsoring organization Oppenheimer Quest Value
Chairman of and parent of the Manager or Funds Group,
the Board of Administrator and/or Adviser or Oppenheimer Small Cap
Trustees, Sub-Adviser to each fund of the Value Fund, Oppenheimer
1984-2003 Aquila(sm) Group of Funds,(5) Chairman Midcap Fund, and
and Chief Executive Officer of the Oppenheimer Rochester
Manager or Administrator and/or Adviser Group of Funds.
or Sub-Adviser to each since 2004, and
Founder, Chairman of the Board of
Trustees, Trustee and (currently or until
1998) President of each since its
establishment, beginning in 1984, except
Chairman of the Board of Trustees of
Hawaiian Tax-Free Trust, Pacific Capital
Cash Assets Trust, Pacific Capital
Tax-Free Cash Assets Trust and Pacific
Capital U.S. Government Securities Cash
Assets Trust through 2003; Director of
the Distributor since 1981 and formerly
Vice President or Secretary, 1981-1998;
Trustee Emeritus, Brown University and
active in university, school and
charitable organizations.
NON-INTERESTED TRUSTEES
Theodore T. Mason Chairman since Executive Director, East Wind Power 5 Trustee, Pimco Advisors
New York, NY 2004 and Partners LTD since 1994 and Louisiana VIT.
(11/24/35) Trustee since Power Partners, 1999-2003; Treasurer,
1984 Alumni Association of SUNY Maritime
College since 2004 (President, 2002-2003,
First Vice President, 2000-2001, Second
Vice President, 1998-2000) and director
of the same organization since 1997;
Director, STCM Management Company, Inc.,
since 1973; twice national officer of
Naval Reserve Association, commanding
officer of four naval reserve units and
Captain, USNR (Ret); director, The Navy
League of the United States New York
Council since 2002; trustee, The Maritime
Industry Museum at Fort Schuyler and the
Maritime College at Fort Schuyler
Foundation, Inc. since 2000.
Thomas W. Courtney Trustee since President, Courtney Associates, Inc., a 5 Chairman of the Board
Sewickley, PA 1984 venture capital firm, since 1988. of Oppenheimer Quest
(08/17/33) Value Funds Group,
Oppenheimer Small Cap
Value Fund, Oppenheimer
Midcap Fund, and
Oppenheimer Rochester
Group of Funds; Trustee
of Pimco Advisors VIT.
Richard W. Gushman, II Trustee since President and Chief Executive Officer, 4 Trustee, Pacific
Honolulu, HI 1993 OKOA, Inc., a diversified Hawaii-based Capital Funds, which
(02/28/46) real estate organization with activities includes 11 bond and
in the western U.S. and the Pacific stock funds; director,
Basin, since 1972; Managing Partner of Outrigger Hotels since
Summit Financial Resources, a Salt Lake 2000; director, Servco
City, Utah-based financial services Pacific, Inc. and
company; trustee, the Estate of James Oceanic Time-Warner
Campbell since 2000 and Chairman of the since 1998; director,
Board of Trustees since 2002; trustee, American Savings Bank
University of Hawaii Foundation and since 2002.
Hawaii Pacific University since 1997;
director, United Way of America since
1998; board member of the Boys & Girls
Club of Honolulu, Aloha United Way, and
other charitable and civic organizations.
Stanley W. Hong Trustee since President, Waste Management of Hawaii, 4 Trustee, Pacific
Honolulu, HI 1993 Inc. since 2002; Corporate Vice Capital Funds, which
(04/05/36) President, Hawaii Area, Waste Management, includes 11 bond and
Inc. since 2002; Trustee, The King stock funds; director,
William Charles Lunalilo Trust Estate First Insurance Co. of
since 2001; President and Chief Executive Hawaii, Ltd., Lanilou
Officer, The Chamber of Commerce of Properties, Ltd.
Hawaii, 1996-2001; director, Hawaii
Public Television Foundation since 1998;
Regent, Chaminade University of Honolulu;
Chair - trustees, Heald College; trustee,
the Nature Conservancy of Hawaii; and
director of other corporate and community
organizations.
Russell K. Okata Trustee since Executive Director, Hawaii Government 4 Trustee, Pacific
Honolulu, HI 1993 Employees Association AFSCME Local 152, Capital Funds, which
(03/22/44) AFL-CIO since 1981; International Vice includes 11 bond and
President, American Federation of State, stock funds; Chairman,
County and Municipal Employees, AFL-CIO Royal State Group.
since 1981; director of various civic and
charitable organizations.
Douglas Philpotts Trustee since Retired; formerly director, Chairman of 4 Trustee, Pacific
Honolulu, HI 1992 the Board and President of Hawaiian Trust Capital Funds, which
(11/21/31) Company, Limited; present or former includes 11 bond and
director of various Hawaii-based civic stock funds.
and charitable organizations.
Oswald K. Stender Trustee since Director, Hawaiian Electric Industries, 4 Trustee, Pacific
Honolulu, HI 1993 Inc., a public utility holding company, Capital Funds, which
(10/08/31) since 1993; trustee, the Bernice Pauahi includes 11 bond and
Bishop Estate 1990-1999; trustee, Office stock funds; director,
of Hawaiian Affairs and a member or Grace Pacific
trustee of several community Corporation, an asphalt
organizations. paving company.
OFFICERS
Diana P. Herrmann President since Vice Chair of Aquila Management N/A N/A
New York, NY 1998 and Vice Corporation, Founder of the Aquila(sm)
(02/25/58) Chair since Group of Funds and parent of the
2004 Administrator, since 2004, President and
Chief Operating Officer since 1997, a
Director since 1984, Secretary since 1986
and previously its Executive Vice
President, Senior Vice President or Vice
President, 1986-1997; Vice Chair since
2004 and President, Chief Operating
Officer and Manager of the Administrator
since 2003; Vice Chair, President,
Executive Vice President or Senior Vice
President of funds in the Aquila(sm)
Group of Funds since 1986; Director of
the Distributor since 1997; trustee,
Reserve Money-Market Funds, 1999-2000 and
Reserve Private Equity Series, 1998-2000;
Governor, Investment Company Institute
since 2004; active in charitable and
volunteer organizations.
Charles E. Childs, III Executive Vice Executive Vice President of all Funds N/A N/A
New York, NY President since since 2003; Senior Vice President,
(04/01/57) 2003 corporate development, formerly Vice
President, Assistant Vice President and
Associate of the Administrator's parent
since 1987; Senior Vice President, Vice
President or Assistant Vice President of
the Money-Market Funds since 1988.
Sherri Foster Vice President Senior Vice President, Hawaiian Tax-Free N/A N/A
Lahaina, HI since 1993 Trust since 1993; Vice President or
(07/27/50) Assistant Vice President of three Aquila
Money-Market Funds; Registered
Representative of the Distributor since
1985.
John M. Herndon Vice President Assistant Secretary of the Aquila(sm) N/A N/A
New York, NY since 1990 and Group of Funds since 1995 and Vice
(12/17/39) Assistant President of the three Aquila
Secretary since Money-Market Funds since 1990; Vice
1995 President of the Administrator or its
predecessor and current parent since
1990.
Joseph P. DiMaggio Chief Financial Chief Financial Officer of the Aquila(sm) N/A N/A
New York, NY Officer since Group of Funds since 2003 and Treasurer
(11/06/56) 2003 and since 2000; Controller, Van Eck Global
Treasurer since Funds, 1993-2000.
2000
Edward M. W. Hines Secretary since Partner, Hollyer Brady Smith & Hines LLP, N/A N/A
New York, NY 1984 legal counsel to the Trust, since 1989;
(12/16/39) Secretary of the Aquila(sm) Group of
Funds.
Robert W. Anderson Assistant Compliance Officer of the Administrator N/A N/A
New York, NY Secretary since or its predecessor and current parent
(08/23/40) 2000 since 1998 and Assistant Secretary of the
Aquila(sm) Group of Funds since 2000;
trustee, Alpha Strategies Fund since
July, 2002; Consultant, The Wadsworth
Group, 1995-1998.
Lori A. Vindigni Assistant Assistant Treasurer of the Aquila(sm) N/A N/A
New York, NY Treasurer since Group of Funds since 2000; Assistant Vice
(11/02/66) 2000 President of the Administrator or its
predecessor and current parent since
1998; Fund Accountant for the Aquila(sm)
Group of Funds, 1995-1998.
- ----------
(1) The Trust's Statement of Additional Information includes additional
information about the Trustees and is available, without charge, upon request by
calling 800-437-1020 (toll free).
(2) The mailing address of each Trustee and officer is c/o The Pacific Capital
Funds of Cash Assets Trust, 380 Madison Avenue, Suite 2300, New York, NY 10017.
(3) Each Trustee holds office until the next annual meeting of shareholders or
until his successor is elected and qualifies. The term of office of each officer
is one year.
(4) Mr. Herrmann is an interested person of the Trust as that term is defined in
the 1940 Act as a shareholder and director of the Distributor.
(5) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S.
Government Securities Cash Assets Trust and Pacific Capital Tax-Free Cash Assets
Trust, each of which is a money-market fund, are called the "Aquila Money-Market
Funds"; Hawaiian Tax-Free Trust, Tax-Free Trust of Arizona, Tax-Free Trust of
Oregon, Tax-Free Fund of Colorado, Churchill Tax-Free Fund of Kentucky,
Narragansett Insured Tax-Free Income Fund and Tax-Free Fund For Utah, each of
which is a tax-free municipal bond fund, are called the "Aquila Bond Funds";
Aquila Rocky Mountain Equity Fund is an equity fund; considered together, these
11 funds are called the "Aquila(sm) Group of Funds."
PRIVACY NOTICE (UNAUDITED)
OUR PRIVACY POLICY. In providing services to you as an individual who owns or is
considering investing in shares of a fund of the Aquila(SM) Group of Funds, we
collect certain nonpublic personal information about you. Our policy is to keep
this information strictly safeguarded and confidential, and to use or disclose
it only as necessary to provide services to you or as otherwise permitted by
law. Our privacy policy applies equally to former shareholders and persons who
inquire about a fund.
INFORMATION WE COLLECT. "Nonpublic personal information" is personally
identifiable financial information about you as an individual or your family.
The kinds of nonpublic personal information we have about you may include the
information you provide us on your share purchase application or in telephone
calls or correspondence with us, and information about your fund transactions
and holdings, how you voted your shares and the account where your shares are
held.
INFORMATION WE DISCLOSE. We disclose nonpublic personal information about you to
companies that provide necessary services to your fund, such as the fund's
transfer agent, distributor, investment adviser or sub-adviser and to our
affiliates, as permitted or required by law, or as authorized by you. We also
may disclose this information to another fund of the Aquila(SM) Group of Funds
or its distributor, or to the broker-dealer that holds your fund shares, under
agreements that permit them to use the information only to provide you
information about your fund, other funds in the Aquila(SM) Group of Funds or new
services we are offering which may be of interest to you. Any other use is
strictly prohibited. We do not sell information about you or any of our fund
shareholders to anyone.
HOW WE SAFEGUARD YOUR INFORMATION. We restrict access to nonpublic personal
information about you to only those persons who need it to provide services to
you or who are permitted by law to receive it. We maintain physical, electronic
and procedural safeguards to protect the confidentiality of all nonpublic
personal information we have about you.
If you have any questions regarding our Privacy Policy, please contact us at
1-800-228-7496.
INFORMATION AVAILABLE (UNAUDITED)
Much of the information that the funds in the Aquila(sm) Group of Funds
produce is automatically sent to you and all other shareholders. Specifically,
you are routinely sent the entire list of portfolio securities of your fund
twice a year in the semi-annual and annual reports you receive. You should know,
however, that we prepare, and have available, portfolio listings at the end of
each month.
Whenever you may be interested in seeing a listing of your trust's
portfolio other than in your shareholder reports, please check our website
(www.aquilafunds.com) or call us at 1-800-228-7496.
INVESTMENT ADVISER
Asset Management Group of Bank of Hawaii
P.O. Box 3170 * Honolulu, Hawaii 96802
ADMINISTRATOR
Aquila Investment Management LLC
380 Madison Avenue, Suite 2300 * New York, New York 10017
BOARD OF TRUSTEES
Theodore T. Mason, Chairman
Lacy B. Herrmann, Founder
Thomas W. Courtney
Richard W. Gushman, II
Stanley W. Hong
Russell K. Okata
Douglas Philpotts
Oswald K. Stender
OFFICERS
Diana P. Herrmann, President
Charles E. Childs, III, Executive Vice President
Sherri Foster, Vice President
Joseph P. DiMaggio, Chief Financial Officer and Treasurer
Edward M.W. Hines, Secretary
DISTRIBUTOR
Aquila Distributors, Inc.
380 Madison Avenue, Suite 2300 * New York, New York 10017
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC Inc.
760 Moore Road * King of Prussia, Pennsylvania 19406
CUSTODIAN
Bank One Trust Company, N.A.
1111 Polaris Parkway * Columbus, Ohio 43240
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue * New York, New York 10017
Further information is contained in the Prospectus
which must precede or accompany this report.
ANNUAL REPORT
MARCH 31, 2004
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
PACIFIC CAPITAL CASH ASSETS TRUST
PACIFIC CAPITAL TAX-FREE
CASH ASSETS TRUST
PACIFIC CAPITAL U.S. GOVERNMENT
SECURITIES CASH ASSETS TRUST
[Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing
on a twisted rope]
A CASH MANAGEMENT
INVESTMENT
ITEM 2. CODE OF ETHICS.
(a) As of March 31, 2004 (the end of the reporting period) the Trust has
adopted a code of ethics that applies to the Trust's principal executive
officer(s)and principal financial officer(s) and persons performing similar
functions ("Covered Officers") as defined in the Aquila Group of Funds
Code of Ethics for Principal Executive and Senior Financial Officers under
Section 406 of the Sarbanes-Oxley Act of 2002.;
(f)(1) Pursuant to Item 10(a)(1), a copy of the Trust's Code of Ethics
that applies to the Trust's principal executive officer(s) and principal
financial officer(s) and persons performing similar functions is included
as an exhibit to its annual report on this Form N-CSR;
(f)(2) The text of the Trust's Code of Ethics that applies to the Trust's
principal executive officer(s) and principal financial officer(s) and persons
performing similar functions has been posted on its Internet website which
can be found at the Trust's Internet address at aquilafunds.com.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1)(ii) The Board of Trustees of the Trust has determined that
it does not have at least one audit committee financial expert
serving on its audit committee. The Trust does not have such a
person serving on the audit committee because none of the persons
currently serving as Trustees happens to have the technical
accounting and auditing expertise included in the definition of
"audit committee financial expert" recently adopted by the Securities
and Exchange Commission in connection with this Form N-CSR, and the
Board has not heretofore deemed it necessary to seek such a person
for election to the Board.
The primary mission of the Board, which is that of oversight over
the operations and affairs of the Trust, confronts the Trustees with
a wide and expanding range of issues and responsibilities. The
Trustees believe that, accordingly, it is essential that the Board's
membership consist of persons with as extensive experience as possible
in fulfilling the duties and responsibilities of mutual fund directors
and audit committee members and, ideally, with extensive experience
and background relating to the economic and financial sectors and
securities in which the Trust invests, including exposure to the
financial and accounting matters commonly encountered with respect
to those sectors and securities. The Board believes that its current
membership satisfies those criteria. It recognizes that it would
also be helpful to have a member with the relatively focused accounting
and auditing expertise reflected in the applicable definition of
"audit committee financial expert," just as additional members with
similarly focused technical expertise in other areas relevant to
the Trust's operations and affairs would also contribute added value.
However, the Board believes that the Trust is better served, and its
assets better employed, by a policy of hiring experts in various
areas, including the specialized area of technical accounting and
auditing matters, if and as the Board identifies the need, rather
than by seeking to expand its numbers by adding technical experts
in the areas constituting its domain of responsibility. The Trust's
Audit Committee Charter explicitly authorizes the Committee to
retain such experts as it deems necessary in fulfilling its duties
under the Charter.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
a) Audit Fees - The aggregate fees billed for professional services
rendered by the principal accountant for the audit of each portfolio
of the Registrant's annual financial statements were as follows:
Name of Portfolio 204 2003
- ----------------- --- -----
Cash Assets Trust $16,450 $16,000
Tax-Free Cash Assets Trust $15,450 $15,000
US Government Securities
Cash Assets Trust $15,450 $15,000
b) Audit Related Fees - There were no amounts billed for audit-related
fees over the past two years.
c) Tax Fees - Each portfolio of the Registrant was billed by the principal
accountant for return preparation as follows:
Name of Portfolio 204 2003
- ----------------- --- -----
Cash Assets Trust $2,935 $3,267
Tax-Free Cash Assets Trust $2,935 $7,142
US Government Securities
Cash Assets Trust $2,935 $3,267
d) All Other Fees - There were no additional fees plaid for audit and non-
audit services other than those disclosed in a) thorough c) above.
e)(1) Currently, the audit committee of the Registrant pre-approves audit
services and fees on an engagement-by-engagement basis
e)(2) None of the services described in b) through d) above were approved
by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation
S-X, all were pre-approved on an engagement-by-engagement basis.
f) No applicable.
g) There were no non-audit services fees billed by the Registrant's accountant
to the Registrant's investment adviser or distributor over the past two years.
h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940) as of a date within 90 days of the fling of this report, the registrant's
chief financial and executive officers have concluded that the disclosure
controls and procedures of the registrant are appropriately designed to ensure
that information required to be disclosed in the registrant's reports that are
filed under the Securities Exchange Act of 1934 are accumulated and communicated
to registrant's management, including its principal executive officer(s) and
principal financial officer(s), to allow timely decisions regarding required
disclosure and is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms adopted by the Securities and Exchange
Commission.
(b) There have been no significant changes in registrant's internal controls or
in other factors that could significantly affect registrant's internal controls
subsequent to the date of the most recent evaluation, including no significant
deficiencies or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and
Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002.
(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized.
CASH ASSETS TRUST
By: /s/ Lacy B. Herrmann
- ---------------------------------
Trustee and Founder
June 7, 2004
By: /s/ Diana P. Herrmann
- ---------------------------------
Vice Chair and President
June 7, 2004
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer and Treasurer
June 7, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Lacy B. Herrmann
- ---------------------------------
Lacy B. Herrmann
Trustee and Founder
June 7, 2004
By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
Vice Chair and President
June 7, 2004
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
June 7, 2004
CASH ASSETS TRUST
EXHIBIT INDEX
(a)(1) Aquila Group of Funds Code of Ethics for Principal Executive
and Senior Financial Officers under Section 406 of the Sarbanes-Oxley
Act of 2002.
(a) (2) Certifications of principal executive officer
and principal financial officer as required by Rule 30a-2(a)
under the Investment Company Act of 1940.
(b) Certification of chief executive officer and chief financial
officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.