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<TABLE>
<CAPTION>
PRIME CASH FUND ANNUAL REPORT
380 Madison Avenue December 31, 1998
Suite 2300
New York, New York 10017
STATEMENT OF NET ASSETS
December 31, 1998
</CAPTION>
<S> <C>
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
</TABLE>
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STATEMENT OF OPERATIONS
For the Year Ended December 31, 1998
The Fund had no operations during the year.
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended December 31,
</CAPTION>
<S> <C> <C>
From Investment Activities: 1998 1997
Net investment income $ -- $ --
Dividends to shareholders
($ 0 and $ 0 per share, respectively) -- --
Change in net assets derived from
investment activities -- --
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
From Fund Share Transactions:
SHARES
Year Ended December 31,
</CAPTION>
1998 1997
<S> <C> <C> <C> <C>
Shares sold -- -- -- --
Shares redeemed
Change in shares and net assets
derived from Fund share
transactions -- -- -- --
Net change in net assets -- -- -- --
NET ASSETS:
Beginning of year 1,001 1,001
End of year $1,001 $1,001
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
<TABLE>
<CAPTION>
PRIME CASH FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Year Ended December 31, ,
1998* 1997* 1996 1995 1994
</CAPTION>
<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
Less Distributions:
Dividends from net investment
income --- --- (0.0045) (0.0552) (0.0370)
Net Asset Value, End of Year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Total Return --- --- ** 5.66% 3.76%
Ratios/Supplemental Data
Net Assets, End of Year
(in thousands) $ 1 $ 1 $ 1 $ 30,009 $ 38,406
Ratio of Expenses to
Average Net Assets --- --- ** 0.45% 0.55%
Ratio of Net Investment Income to
Average Net Assets --- --- ** 5.55% 4.00%
The expense and net investment income ratios without the effect of the Adviser's and
Administator's voluntary waiver of fees and the Administrator's voluntary expense
reimbursement were:
Ratio of Expenses to
Average Net Assets --- --- ** 0.72% 0.76%
Ratio of Net Investment Income to
Average Net Assets --- --- ** 5.28% 3.79%
* The Fund had no operations during the year.
** Results are not presented for 1996 inasmuch as the Fund was in operation for only one
month.
</TABLE>
</PAGE>
<PAGE>
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.
Preparing for Year 2000 (unaudited)
The Trustees and officers of the Fund have been monitoring
issues involving preparedness for the turn of the century for some
time in an effort to minimize or eliminate any potential impact
upon the Fund and its shareholders. Our officers have focussed
significant time and effort in order that the various computerized
functions that could affect the Fund are ready by the beginning of
the year 2000.
The Fund is highly reliant on certain mission-critical
suppliers' services. Each supplier of these services has provided
the Fund's officers with assurances that it is actively addressing
potential problems relating to the year 2000. The officers, in
turn, are monitoring and will continue to monitor the progress of
its suppliers.
As you can well understand, we cannot directly control our
supplier operations. We assure you, however, that we recognize a
responsibility to inform our shareholders if in the future we
become aware of any developments which would lead us to believe
that the Fund will be significantly affected by year 2000 problems.
We will continue to keep you up-to-date through future
communications.
</PAGE>
<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, 1998, and the related statement
of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period then ended,
and the financial highlights for each of the years in the 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, 1998, 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.
/s/ KPMG LLP
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New York, New York
February 1, 1999
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