PRIME CASH FUND ANNUAL REPORT
380 Madison Avenue December 31, 1997
Suite 2300
New York, New York 10017
STATEMENT OF NET ASSETS
December 31, 1997
Cash and Net Assets - 100.0%. . . . . . . . . . . . . $1,001
Applicable to 1,001 shares outstanding (unlimited
number of $.01 par value shares authorized). . .
Net Asset Value Per Share . . . . . . . . . . . . . . $1.00
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STATEMENT OF OPERATIONS
For the Year Ended December 31, 1997
The Fund had no operations during the year.
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STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended December 31,
From Investment Activities: . . . . . . . 1997 1996
<S> <C> <C>
Net investment income . . . . . . . . . . $ -- $ 115,320
Dividends to shareholders ($ 0 and $ 0.0045
per share, respectively) -- 115,320
Change in net assets derived from investment
activities -- --
<CAPTION>
From Fund Share Transactions:
SHARES
Year Ended December 31,
1997 1996
<S> <C> <C> <C> <C>
Shares sold . . . . . . . . . -- 1,059 -- 1,059
Shares redeemed . . . . . . . -- (30,008,702) -- (30,008,702)
Change in shares and net
assets derived from Fund
share transactions -- (30,007,643) -- (30,007,643)
Net change in net assets. . . -- (30,007,643)
NET ASSETS:
Beginning of year . . . . . . 1,001 30,008,644
End of year . . . . . . . . . $ 1,001 $ 1,001
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PRIME CASH FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
Year Ended December 31,
1997* 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year . . $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Income from Investment
Operations:
Net investment income --- 0.0045 0.0552 0.0370 0.0260
Less Distributions:
Dividends from net
investment income --- (0.0045) (0.0552) (0.0370) (0.0260)
Net Asset Value, End of
Year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Total Return. . . . . . --- ** 5.66% 3.76% 2.63%
Ratios/Supplemental Data
Net Assets, End of Year
(in thousands) . . . $ 1 $ 1 $ 30,009 $ 38,406 $ 67,170
Ratio of Expenses to
Average Net Assets . --- ** 0.45% 0.55% 0.61%
Ratio of Net Investment
Income to Average Net
Assets --- ** 5.55% 4.00% 2.60%
<CAPTION>
For the years 1995 and 1994, net investment income per share and the
ratios of income and expenses to average net assets without the Adviser's
and Administrator's voluntary waiver of fees and the Adminstrator's voluntary
expense reimbursement and, the expense offset in custodian fees for
uninvested cash balances in 1995, would have been:
<S> <C> <C> <C>
Net Investment Income ** $ 0.0525 $ 0.0350
Ratio of Expenses to
Average Net Assets. ** 0.72% 0.76%
Ratio of Net Investment Income to
Average Net Assets ** 5.28% 3.79%
<FN>
* The Fund had no operations during the year.
</FN>
<FN>
** Results are not presented for 1996 inasmuch as the Fund was in operation
for only one month.
</FN>
</TABLE>
NOTES TO FINANCIAL STATEMENTS
Note A - Prime Cash Fund (the "Fund") was organized on September 10, 1982
as a Massachusetts business trust and is authorized to issue an unlimited
number of shares. The Fund commenced operations on April 12, 1983 as a
diversified, open-end investment company. The Fund ceased operations on
February 1, 1996 inasmuch as all shares outstanding, except for 1,001 shares
owned by Aquila Management Corporation, had been redeemed by shareholders.
Although the Fund is not conducting a public offering of it shares, it will
continue its existence as a Massachusetts business trust and maintain its
registration as an investment company.
Note B - Since inception, the Fund has qualified as a regulated investment
company by complying with the provisions of the Internal Revenue Code
applicable to certain investment companies. The Fund made distributions of
income and securities profits sufficient to relieve it from all, or
substantially all, Federal income and excise taxes.
<PAGE>
Report of the Annual Meeting of Shareholders (unaudited)
The Annual Meeting of Shareholders of Prime Cash Fund (the "Fund") was
held on December 15, 1997*. At the meeting, the following matters were
submitted to a shareholder vote and approved by a unanimous vote of the
Fund's outstanding voting securities: (i) the election of Lacy B. Herrmann,
Paul Y. Clinton, and Theodore T. Mason as Trustees to hold office until the
next annual meeeting of the Fund's shareholders or until his or her successor
is duly elected, and (ii) the ratification of the selection of KPMG Peat
Marwick LLP as the Fund's independent auditors for the fiscal year ending
December 31, 1997.
________________________________________
* On the record date for this meeting, 1,001 shares of the Fund were
outstanding and entitled to vote. The holders of all shares entitled to
vote were present in person at the meeting.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Prime Cash Fund:
We have audited the accompanying statement of net assets of Prime Cash
Fund, as of December 31, 1997, the related statement of operations for the
year then ended, the statements of changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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. 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 Prime Cash Fund as of December 31, 1997, the results of its
operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial
highlights for each of the years in the five-year period then ended, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
February 6, 1998
