INVESTMENT ADVISER
Hawaiian Trust Company, Limited
Financial Plaza of the Pacific * P.O. Box 3170
Honolulu, Hawaii 96802
ADMINISTRATOR
Aquila Management Corporation
380 Madison Avenue, Suite 2300 * New York, New York 10017
BOARD OF TRUSTEES
Lacy B. Herrmann, Chairman
Vernon R. Alden
Arthur K. Carlson
William M. Cole
Thomas W. Courtney
Richard W. Gushman, II
Stanley W. Hong
Theodore T. Mason
Russell K. Okata
Douglas Philpotts
Oswald K. Stender
OFFICERS
Lacy B. Herrmann, President
Diana P. Herrmann, Senior Vice President
Charles E. Childs, III, Vice President
Sherri Foster, Vice President
Rose F. Marotta, Chief Financial Officer
Richard F. West, 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
Administrative Data Management Corp.
581 Main Street * Woodbridge, New Jersey 07095-1198
CUSTODIAN
Bank One Trust Company, N.A.
100 East Broad Street * Columbus, Ohio 43271
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue * New York, New York 10154
Further information is contained in the Prospectus,
which must precede or accompany this report.
ANNUAL
REPORT
MARCH 31, 1997
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
PACIFIC CAPITAL CASH ASSETS TRUST
PACIFIC CAPITAL TAX-FREE
CASH ASSETS TRUST
PACIFIC CAPITAL U.S. TREASURIES
CASH ASSETS TRUST
[Logo of The Pacific Capital Funds of Cash Assets Trust: Side view of a
standing lion above a thick rope]
A CASH MANAGEMENT
INVESTMENT
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
ANNUAL REPORT
May 1, 1997
Dear Investor:
We are pleased to provide you with the Annual Report for The Pacific
Capital Funds of Cash Assets Trust (the "Trust") for the fiscal year ended
March 31, 1997.
The enclosed Annual Report includes the three series of Cash Assets
Trust: Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash
Assets Trust and Pacific Capital U.S. Treasuries Cash Assets Trust and its
two classes of shares: Original Shares and Service Shares. Each of the three
portfolios were specifically created to meet the short-term investment needs
of Hawaii investors and others.
* * * * * * *
ECONOMIC REVIEW
The economic climate and the Federal Reserve's monetary policy once
again had an impact on the short-term debt markets during the Trust's current
report period.
The Federal Reserve voted on March 25th to raise short-term interest
rates for the first time in more than two years. The central bank took one
of the smallest steps it could, raising the more important of the two
short-term rates it controls - the Federal funds target rate for overnight
loans between banks - by 25 basis points, to 5.50%. In doing so, the Federal
Reserve was trying to keep the economy from growing so fast that it generates
wage and price pressures strong enough to threaten the nation's six-year
economic expansion.
Indeed, forecasts of economic growth are being revised upward as
business activity and consumer spending continue to expand at a strong pace -
a pace which started late last year and continues unabated into 1997. The
Federal Reserve is concerned that with a strong economy and low unemployment,
inflation would worsen as the increased stress on labor markets would
potentionally put additional upward pressure on wages and ultimately prices.
MANAGEMENT DISCUSSION
The three separate portfolios of the Trust - Pacific Capital Cash
Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Pacific Capital
U.S. Treasuries Cash Assets Trust - continue to provide competitive returns
to alternative short-term investment opportunities without wavering from
their conservative investment approach.
<PAGE>
We should emphasize that safety of the principal value of your
investment and ready liquidity have always been, and continue to be, two of
the main goals in the management of investors' assets in The Pacific Capital
Funds of Cash Assets Trust.
Yield has always been a consideration in our management of your cash
reserves. However, it has also always been the very strongest belief of the
Trust's Board of Trustees, the Investment Adviser and management that
investors' cash reserves is one area with which one does not take any undue
risks in order to seek a marginally higher rate of return.
Looking forward, we are optimistic that The Pacific Capital Funds of
Cash Assets Trust will continue to provide investors attractive yields
compared to alternative money market investments. With the possibility of
further interest rate increases in the offing, each of the Trust's investment
portfolios is well positioned to continually attract higher and competitive
rates of return. Through alertness to market opportunities, the Trust can
produce a highly competitive return for its investors without compromising
safety.
We wish to thank you for the continued support and confidence you
have placed in The Pacific Capital Funds of Cash Assets Trust. We look
forward to serving your cash management needs during the rest of 1997 and for
many years to come.
Sincerely,
/s/ Lacy B. Herrmann
Lacy B. Herrmann
President and Chairman
of the Board of Trustees
<PAGE>
KPMG Peat Marwick LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders 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
Cash Fund, Tax-Free Fund and Treasuries Fund), including the statements of
investments, as of March 31, 1997, the related statements 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 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 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. Our procedures included confirmation of
securities owned as of March 31, 1997, by correspondence with the custodian.
An audit also includes assessing the accounting principles used, and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Trust as of March 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
May 9, 1997
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT COMMERCIAL PAPER (46.3%) VALUE
<C> <S> <C>
Automotive (3.1%)
$ 15,000,000 Ford Motor Credit Co., 5.31%,04/17/97 $ 14,964,600
Banking/Credit Union (13.2%)
10,000,000 Banco de Credito Nacional S.A. New York
Branch, 5.45%, 04/17/97 9,975,778
Letter of Credit: Barclays Bank PLC
9,400,000 Barclays Bank, PLC, 5.33%, 04/01/97 9,400,000
10,000,000 Bayerische Vereinsbank A.G., 5.35%,
04/09/97 9,988,111
15,000,000 National Bank of Pakistan New York
Branch,
5.37%, 04/08/97 14,984,337
Letter of Credit: Credit Suisse
20,000,000 U.S. Central Credit Union, 5.32%,
05/09/97 19,887,689
64,235,915
Borrowing Conduit (4.1%)
20,000,000 Abbey National North American Corp.,
5.26%, 04/23/97 19,935,711
Brokerage (3.1%)
15,000,000 Merrill Lynch & Company, Inc., 5.29%,
04/11/97 14,977,958
Diversified (3.6%)
17,500,000 Cargill Incorporated, 5.25%, 05/20/97 17,374,948
Education (1.2%)
6,000,000 Stanford University, 5.32% , 04/21/97 5,982,267
Finance (12.2%)
15,000,000 Associates Corporation of North America,
5.31%, 04/18/97 14,962,388
20,000,000 General Electric Capital Corp., 5.50%,
05/23/97 19,841,111
15,000,000 National Rural Utilities, 5.28%,
04/04/97 14,993,400
10,000,000 Safeco Credit Company, 5.40%, 06/17/97 9,884,500
59,681,399
Household Products (2.7%)
13,500,000 Formosa Plastics Corp. U.S.A., 5.60%,
06/23/97 13,325,700
Letter of Credit: ABN-AMRO Bank N.V.
Insurance (3.1%)
15,000,000 Prudential Funding Corp., 5.32%,
04/16/97 14,966,750
Total Commercial Paper
(cost $225,445,248) 225,445,248
<PAGE>
U.S. TREASURY BILLS (5.1%)
10,000,000 5.16%, due 04/17/97 9,977,089
15,000,000 5.16%, due 04/17/97 14,965,600
Total U.S. Treasury Bills
(cost $24,942,689) 24,942,689
NOTES (19.4%)
U.S. Government Agencies (16.3%)
20,000,000 Farmer Mac, 5.23%, 04/15/97 19,959,283
20,000,000 Federal Home Loan Bank, 5.51%,
06/26/97 19,736,745
20,000,000 Federal Mortgage Corp., 5.175%,
05/16/97 19,870,625
20,000,000 Federal National Mortgage Association,
5.16%, 05/22/97 19,853,800
79,420,453
Insurance (3.1%)
15,000,000 Providian Life and Health Insurance
Company Variable Rate Note,
5.59%, 06/30/97 (1) 15,000,000
Total Notes (cost $94,420,453) 94,420,453
REPURCHASE AGREEMENTS (29.6%)
72,000,000 Dresdner Kleinwort Benson North America
LLC, 5.90%, due 04/01/97 72,000,000
(Proceeds of $72,011,800 to be received
at maturity)
Collateral: $50,000,000 U.S. Treasury
Bonds 6.00% due 02/15/26
Collateral Market Value $43,186,800
Collateral: $23,000,000 U.S. Treasury
Bonds 6.00% due 02/15/26
Collateral Market Value $19,874,700
Collateral: $10,580,000 U.S. Treasury
Bonds 5.00% due 02/15/99
Collateral Market Value $10,378,500
<PAGE>
72,345,000 SBC Warburg Inc., 6.25%, due 04/01/97 72,345,000
(Proceeds of $72,357,560 to be received
at maturity)
Collateral: $50,000,000 U.S. Treasury
Note 8.25% due 07/15/98
Collateral Market Value $52,061,820
Collateral: $20,598,000 U.S. Treasury
Note 8.75% due 10/15/97
Collateral Market Value $21,730,080
Total Repurchase Agreements
(cost $144,345,000) 144,345,000
Total Investments
(cost $489,153,390*) 100.4% 489,153,390
Liabilities in excess of other
assets (.4) (2,024,932)
Net Assets 100.0% $ 487,128,458
<FN>
(*) Cost for Federal tax purposes is identical.
</FN>
<FN>
(1) Illiquid security. The security is considered illiquid because it
may not be sold, and may be redeemed only upon at least ninety days'
notice to the issuer.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
RATING
FACE MOODY'S/
AMOUNT BONDS AND NOTES (99.5%) S&P VALUE
<C> <S> <C> <C>
CALIFORNIA (2.1%)
County of San Mateo, Tax and
Revenue Anticipation Notes,
General Obligation,
$ 2,400,000 4.50%, 07/01/97 MIG1/SP1+ $ 2,403,165
FLORIDA (1.7%)
Jacksonville, FL Electric
Authority Revenue
Bonds St. Johns River,
1,000,000 5.00%, 10/01/97 Aa1/AA 1,005,500
Jacksonville, FL Electric
Authority Revenue Bonds St.
Johns River, Tax Exempt
Commercial Paper Series
1,000,000 3.25%, 05/09/97 P-1/A-1+ 1,000,000
Total Florida 2,005,500
GEORGIA (2.6%)
Cobb County, GA School District,
General Obligation,
3,000,000 5.00%, 2/1/98 Aa1/AA 3,035,451
HAWAII (45.8%)
City and County of Honolulu, HI
General Obligation Bond
Anticipation Notes Tax
Exempt Commercial Paper Series,
2,850,000 3.35%, 04/03/97 P-1/A-1+ 2,850,000
1,700,000 3.35%, 04/08/97 1,700,000
Hawaii State, General Obligation
Bonds 1993 Series CD,
3,285,000 4.30%, 02/01/98 Aa3/A+ 3,300,529
Hawaii State, General Obligation
Bonds 1993 Series CH,
3,300,000 3.60%, 11/01/97 Aa3/A+ 3,298,463
Hawaii State, General Obligation
Bonds 1988 Series BK,
2,195,000 7.40%, 04/01/06,
Pre-Refunded 04/01/97 Aaa/A+ 2,227,925
Hawaii State, General Obligation
Bonds 1989 Series BN,
1,450,000 7.00%, 06/01/97 Aa3/A+ 1,457,601
Hawaii State, General Obligation
Bonds 1992 Series BZ,
3,500,000 5.50%, 10/01/97 Aa3/A+ 3,528,123
Hawaii State Department of Budget
& Finance Special Purpose
Mortgage Revenue Bonds, (Kaiser
Medical Care Program), Adjustable
Rate Series A,
3,300,000 3.45%, 03/01/15, Putable 04/07/97* VMIG1/A-1+ 3,300,000
<PAGE>
Hawaii State Department of Budget
& Finance Citizens Utility-
Revenue Bonds Series B.
(Tax-Exempt Commercial Paper
Series),
2,190,000 3.40%, 04/04/97 NR/A-1+ 2,190,000
2,810,000 3.45%, 04/14/97 NR/A-1+ 2,810,000
1,000,000 3.40%, 05/01/97 NR/A-1+ 1,000,000
Hawaii State Department of Budget
& Finance Citizens
Utility-Revenue Bonds Series 85.
(Tax-Exempt Commercial Paper
Series),
1,750,000 3.25%, 05/16/97 NR/A-1+ 1,750,000
Hawaii State Department Of Budget
& Finance Special Purpose
Mortgage Revenue Bonds
(Kaiser Pemanente), Series A,
6,540,000 3.50%, 03/01/14, 6 month Put, next
putable date 09/02/97 NR/A-1+ 6,540,000
Hawaii State Department Of Budget
& Finance Special Purpose
Mortgage Revenue Bonds (The
Queens Health System) Series A,
1,250,000 4.00%, 07/01/97 Aa3/AA 1,250,000
Hawaii State Housing Finance &
Development Corp. Revenue Bonds
(Rental Housing System) Series
89 A,
Letter of Credit: Banque National
De Paris
2,000,000 3.55%, 07/01/24, Putable 04/07/97* VMIG1/NR 2,000,000
Hawaii State Highway Improvement
Revenue Bonds,
1,500,000 3.80%, 07/01/97 Aa/AA3 1,500,000
Hawaii State Housing Finance &
Development Corp. Revenue Bonds
(Affordable Rental
Housing Program) Series A,
5,300,000 3.70%, 07/01/27, Putable 04/07/97* VMIG1/NR 5,300,000
Letter of Credit: Banque National
De Paris
<PAGE>
Honolulu County, HI General
Obligation Bonds, Series A,
1,000,000 7.30%, 04/01/98 Aa/AA 1,035,373
Honolulu County, HI General
Obligation Bonds, Series B,
Refunding Bonds,
500,000 4.20%, 10/01/97 Aa/AA 501,235
Maui County, HI General Obligation
Bonds, Series A,
450,000 4.00%, 06/1/97 Aaa/AAA 450,000
Insurance: Municipal Bond
Investors Assurance
Secondary Market Services
Corporation Hawaii
Student Loan Revenue, Senior
Series II,
5,400,000 3.50%, 09/01/10, Putable 04/07/97* VMIG1/A-1+ 5,400,000
Letter of Credit: National
Westminster, Guaranteed Student
Loans
Total Hawaii 53,389,249
IDAHO(2.3%)
Idaho Health Facilities
Authorized Revenue Bonds
(St Lukes Regional Medical
Center Project),
2,690,000 3.85%, 05/01/22, Putable 04/01/97* VMIG1/NR 2,690,000
Letter of Credit: Credit Suisse
ILLINOIS(3.3%)
Illinois Health Facilities
Authority Revenue Bonds (Central
Dupage Health Corp. Project),
3,850,000 3.85%, 11/01/20, Putable 04/01/97* VMIG1/NR 3,850,000
Letter of Credit: Rabobank
Nederland
INDIANA (6.3%)
Gary, IN Environmental Improvement
Revenue Bonds (US Steel
Corporation Project),
3,100,000 3.45%, 07/07/02, Putable 04/07/97* P-1/A-1+ 3,100,000
Letter of Credit: Bank of Nova
Scotia
Indianapolis, IN Economic
Development Revenue
Bonds (Jewish Federation Campus),
2,200,000 3.45%, 04/01/05, Putable 04/07/97* VMIG1/NR 2,200,000
Letter of Credit: NBD Bank
<PAGE>
Purdue University, IN University
Revenue Bonds
(Student Fee) Series E,
2,000,000 3.30%, 07/01/11, Putable 04/07/97* VMIG1/A-1+ 2,000,000
Total Indiana 7,300,000
KENTUCKY (2.0%)
Warsaw, KY Industrial Building
Revenue Bonds
(Operating Partnership) ,
2,300,000 3.55%, 08/01/09, Putable 04/07/97* NR/A-1+ 2,300,000
Letter of Credit: Fifth Third
Bank, Ohio
LOUISIANA (2.1%)
De Soto Parish, LA Pollution
Control Revenue Bonds (Central
Louisiana Electric Company)
Series A,
2,500,000 3.30%, 07/01/18, Putable 04/07/97* VMIG1/A-1+ 2,500,000
Letter of Credit: Swiss Bank
MARYLAND (0.9%)
Baltimore County, MD General
Obligation Bonds,
Conservation Public Improvement,
1,000,000 6.80%, 09/01/97 Aaa/AAA 1,013,474
NEW JERSEY (3.4%)
Morris County, NJ General Obligation
Bonds
Bond Anticipation Notes,
4,000,000 3.97%, 08/07/97 MIG1/SP1+ 4,000,942
NEW MEXICO (5.6%)
Albuquerque, NM Airport Revenue
Bonds Series A,
3,500,000 3.45%, 07/01/17, Putable 04/07/97* VMIG1/A-1+ 3,500,000
Letter of Credit: Bayerische
Landesbank
New Mexico State General
Obligation Bonds,
Capital Improvement Project,
3,000,000 6.10%, 09/01/97 Aa1/AA+ 3,029,280
Total New Mexico 6,529,280
NEW YORK (3.4%)
New York, NY General Obligation
Bonds, Series B ,
2,000,000 3.80%, 10/01/22, Putable 04/01/97* VMIG1/A-1+ 2,000,000
Letter of Credit: Financial
Guaranty Insurance Corporation
<PAGE>
New York, NY Municipal Water
Finance Authority Water & Sewer
System Revenue Bonds Series A,
2,000,000 3.80%, 06/15/25, Putable 04/01/97* VMIG1/A-1+ 2,000,000
Letter of Credit: Financial
Guaranty Insurance Corporation
Total New York 4,000,000
NORTH CAROLINA (1.2%)
Durham County, NC General
Obligation Bonds,
Public Improvement Project
1,400,000 3.40%, 02/01/09, Putable 04/07/97* VMIG1/A-1+ 1,400,000
Letter of Credit: Wachovia Bank
OHIO (4.4%)
Ohio State University Revenue
Bonds, General
Receipts, Series B,
2,035,000 3.35%, 12/01/01, Putable 04/07/97* VMIG1/A-1+ 2,035,000
Letter of Credit: National
Westminster
Ohio State University Revenue Bonds,
General Receipts, Series B,
2,045,000 3.35%, 12/01/06, Putable 04/07/97* VMIG1/A-1+ 2,045,000
Letter of Credit: National
Westminster
Ohio State Highway General
Obligation Bonds, Series T,
1,000,000 4.80%, 05/15/97 Aa1/AAA 1,001,346
Total Ohio 5,081,346
TENNESSEE (0.9%)
Memphis, TN General Obligation
Bonds,
1,040,000 4.00%, 08/01/97 Aa/AA 1,040,505
TEXAS (3.9%)
Lower Neches Valley Authority
of Texas Revenue Bonds
(Chevron USA Income Project),
2,500,000 3.50%, 02/15/17, 6 month put,
next putable date
08/15/97 P-1/A-1+ 2,500,000
Texas State Tax & Revenue
Anticipation Notes Series A,
2,000,000 4.75%, 08/29/97 MIG1/Sp1+ 2,006,717
Total Texas 4,506,717
<PAGE>
VIRGINIA (0.9%)
Virginia Beach General Obligation
Bonds Series C,
1,000,000 6.10%, 8/1/97 Aa/AA 1,007,472
VERMONT (0.9%)
Vermont State Student Assistance
Corp. Revenue Bonds (Student
Loan Revenue),
1,100,000 3.55%, 01/01/04, Putable 04/07/97* VMIG1/NR 1,100,000
Letter of Credit: National
Westminster
WASHINGTON (2.8%)
Washington State Health Care
Facilty Authority Variable
Rate Demand (Fred
Hutchinson Cancer Research
Center, Seattle) Series 1991
A&C,
1,490,000 3.85%, 01/01/18, Putable 04/01/97* VMIG1/NR 1,490,000
1,810,000 3.85%, 01/01/23, Putable 04/01/97* 1,810,000
Total Washington 3,300,000
WISCONSIN (2.1%)
Wisconsin State Health Facilities
Authority Variable Rate Demand
Bonds (Franciscan Health Care),
Series Ab1 & Ab2,
500,000 3.35%, 01/01/16, Putable 04/07/97* VMIG1/A-1+ 500,000
1,940,000 3.35%, 01/01/16, Putable 04/07/97* 1,940,000
Letter of Credit: Toronto
Dominion Bank
Total Wisconsin 2,440,000
WYOMING (0.9%)
Sweetwater County, WY Pollution
Control Revenue Refunding Bonds
(Pacific Corp Project)
Series 1990 A,
1,000,000 3.40%, 07/01/15, Putable 04/07/97* VMIG1/A-1+ 1,000,000
Letter of Credit: Credit Suisse
Total Investments
(cost $115,893,101**) 99.5% 115,893,101
Other assets in excess
of liabilities .5 618,408
Net Assets 100.0% $ 116,511,509
<FN>
(*) Variable rate obligation payable at par on demand at any time on no
more than seven days notice.
</FN>
<FN>
(**) Cost for Federal tax purposes is identical.
</FN>
</TABLE>
See accompanying notes to financial statements
<PAGE>
PACIFIC CAPITAL
U.S. TREASURIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1997
<TABLE>
<CAPTION>
FACE
AMOUNT U.S. TREASURY BILLS (33.5%) VALUE
<C> <S> <C>
$ 15,000,000 5.02%, due 04/03/97 $ 14,995,812
15,000,000 5.13%, due 04/17/97 14,965,833
10,000,000 5.16%, due 04/17/97 9,977,067
10,000,000 5.27%, due 04/17/97 9,976,578
Total U.S. Treasury Bills
(cost $49,915,290) 49,915,290
U.S. TREASURY NOTES (40.3%)
15,000,000 6.875%, due 04/30/97 15,019,741
15,000,000 6.500%, due 05/15/97 15,022,986
15,000,000 5.875%, due 07/31/97 15,031,510
15,000,000 5.500%, due 09/30/97 15,004,519
Total U.S. Treasury Notes (cost
$60,078,756) 60,078,756
REPURCHASE AGREEMENTS (26.0%)
18,851,000 SBC Warburg Inc., 6.25%, due 04/01/97 18,851,000
(Proceeds of $18,854,273 to be received
at maturity)
Collateral: $13,541,000 U.S. Treasury
Bond 11.25% due 02/15/15
Collateral Market Value $19,228,020
20,000,000 Dresdner Kleinwort Benson North America
LLC, 5.90%, due 4/01/97 20,000,000
(Proceeds of $20,003,278 to be received
at maturity)
Collateral: $20,047,000 U.S. Treasury
Note 6.00% due 05/31/98
Collateral Market Value $20,400,000
Total Repurchase Agreements
(cost $38,851,000) 38,851,000
Total Investments (cost
$148,845,046*) 99.8% 148,845,046
Other assets in excess of
liabilities .2 285,668
Net Assets 100.0% $ 149,130,714
<FN>
(*) Cost for Federal tax purposes is identical.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1997
<TABLE>
<CAPTION>
CASH TAX-FREE TREASURIES
FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments, at value $ 489,153,390 $ 115,893,101 $ 148,845,046
(cost: $489,153,390,
$115,893,101, and
$148,845,046, respectively)
Cash 918 1,607 538
Interest receivable 96,606 956,006 960,389
Other assets 12,181 632 409
Total Assets 489,263,095 116,851,346 149,806,382
LIABILITIES:
Dividends payable 1,882,833 271,852 594,553
Adviser and Administrator
fees payable 197,705 39,752 52,193
Distribution fees payable 14,164 5,327 18,786
Accrued expenses 39,935 22,906 10,136
Total Liabilities 2,134,637 339,837 675,668
NET ASSETS $ 487,128,458 $ 116,511,509 $ 149,130,714
NET ASSETS CONSIST OF:
Capital Stock - Authorized
an unlimited number of
shares, par value $.01
per share $ 4,878,444 $ 1,165,094 $ 1,491,212
Additional paid-in capital 482,965,952 115,344,284 147,629,947
Accumulated net realized
gain (loss) on investments (715,938) 2,131 9,555
$ 487,128,458 $ 116,511,509 $ 149,130,714
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets $ 421,365,448 $ 90,995,199 $ 65,706,444
Shares outstanding 422,093,185 90,993,746 65,699,376
Net asset value per share $1.00 $1.00 $1.00
Service Shares Class:
Net Assets $ 65,763,010 $ 25,516,310 $ 83,424,270
Shares outstanding 65,751,211 25,515,631 83,421,783
Net asset value per share $1.00 $1.00 $1.00
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
CASH TAX-FREE TREASURIES
FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 21,924,205 $ 4,979,053 $ 6,564,367
EXPENSES:
Investment Adviser fees (note 3) 1,424,936 410,547 379,291
Administrator fees (note 3) 609,175 156,130 124,062
Distribution fees (note 3) 125,694 50,847 141,496
Legal fees 118,541 46,799 33,526
Trustees' fees and expenses 118,325 55,904 45,189
Shareholders' reports and proxy
statements 41,713 10,108 7,057
Fund accounting fees 29,424 28,441 29,807
Audit and accounting fees 22,050 22,050 19,300
Transfer and shareholder servicing
agent fees 18,196 17,006 13,253
Registration fees and dues 15,859 5,155 3,703
Custodian fees (note 6) 15,104 12,776 12,893
Insurance 6,882 2,880 1,727
Miscellaneous 34,951 9,986 24,952
Total expenses 2,580,850 828,629 836,256
Expenses paid indirectly (note 6) (6,461) (1,267) (7,202)
Net expenses 2,574,389 827,362 829,054
Net investment income 19,349,816 4,151,691 5,735,313
Net realized gain from securities
transactions 46,777 2,857 4,476
Net increase in net assets
resulting from operations $ 19,396,593 $ 4,154,548 $ 5,739,789
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CASH FUND TAX-FREE FUND TREASURIES FUND
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
March 31,1997 March 31, 1996 March 31, 1997 March 31, 1996 March 31, 1997 March 31, 1996
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 19,349,816 $ 20,398,306 $ 4,151,691 $ 4,503,165 $ 5,735,313 $ 3,774,744
Net realized gain from
securities transactions 46,777 123,536 2,857 2,817 4,476 5,079
Net increase in net assets
resulting from operations 19,396,593 20,521,842 4,154,548 4,505,982 5,739,789 3,779,823
DIVIDENDS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME:
Original Shares (17,064,462) (19,582,910) (3,599,870) (4,171,075) (3,218,910) (3,521,108)
Service Shares (2,285,354) (815,396) (551,821) (332,090) (2,516,403) (253,636)
Total dividends to
shareholders from net
investment income (19,349,816) (20,398,306) (4,151,691) (4,503,165) (5,735,313) (3,774,744)
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares 1,381,029,520 1,151,381,874 253,991,606 317,952,322 347,794,907 297,398,080
Service Shares 363,384,239 155,686,423 57,483,211 33,774,004 614,489,280 32,654,749
1,744,413,759 1,307,068,297 311,474,817 351,726,326 962,284,187 330,052,829
Reinvested dividends and
distributions:
Original Shares 123,463 202,235 131,295 149,023 58,222 76,296
Service Shares 2,156,127 703,688 535,951 281,888 2,238,344 209,080
2,279,590 905,923 667,246 430,911 2,296,566 285,376
Cost of shares redeemed:
Original Shares (1,268,495,494) (1,329,689,125) (288,308,370) (331,260,352) (356,184,998) (287,477,003)
Service Shares (332,639,067) (127,041,609) (50,112,294) (17,825,199) (545,111,791) (21,563,607)
(1,601,134,561) (1,456,730,734) (338,420,664) (349,085,551) (901,296,789) (309,040,610)
Change in net assets
from capital share
transactions 145,558,788 (148,756,514) (26,278,601) 3,071,686 63,283,964 21,297,595
Total increase (decrease)
in net assets 145,605,565 (148,632,978) (26,275,744) 3,074,503 63,288,440 21,302,674
NET ASSETS:
Beginning of period 341,522,893 490,155,871 142,787,253 139,712,750 85,842,274 64,539,600
End of period $ 487,128,458 $ 341,522,893 $ 116,511,509 $ 142,787,253 $ 149,130,714 $ 85,842,274
</TABLE>
See accompanying notes to financial statements.
<PAGE>
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 (a diversified portfolio which commenced operations on
December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust (a
non-diversified portfolio which commenced operations on April 4, 1989), and
Pacific Capital U.S. Treasuries Cash Assets Trust (a diversified portfolio
which commenced operations on April 4, 1989). The Trust is authorized to
issue for each Fund an unlimited number of shares of $.01 par value in two
classes of shares; the Original Shares Class and the Service Shares Class.
The Original Shares Class includes all currently outstanding shares of each
Fund that were issued prior to January 20, 1995, the date on which the
Capital structure was changed to include two classes rather than one. The two
classes of shares are substantially identical, except that Service Shares
bear the fees that are payable under the Trust's Distribution Plan.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles for investment
companies.
a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the
amortized cost method permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940 (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 is open by dividing the value of the assets of the Fund
allocable to that class less Fund liabilities allocable to the class
and any liabilities charged directly to the class, exclusive of
surplus, by the total number of shares of the class outstanding.
Investment income, realized and unrealized gains and losses, if any,
and expenses other than class specific expenses, are allocated daily
to each class of shares based upon the proportion of net assets
<PAGE>
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 so that the value of the "collateral" is at least
equal to the value of the "loan" (repurchase agreements being defined as
"loans" in the 1940 Act), including the accrued interest earned thereon,
plus sufficient additional market value as is considered necessary to
provide a margin of safety.
f) USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
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:
Hawaiian Trust Company, Limited (the "Adviser") serves as Investment
Adviser to the Trust. In this role, under Investment Advisory Agreements, the
Adviser supervises the Funds' investments and provides various services. The
Funds also have Administration Agreements with Aquila Management Corporation
(the "Administrator", formerly Sub-Adviser and Administrator) to provide all
administrative services to the Funds other than those relating to the
investment portfolio and the maintenance of the accounting books and records.
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. For the year ended
<PAGE>
March 31, 1997, the Fund incurred fees under the Advisory Agreement and the
Administration Agreement of $1,424,936 and $609,175, 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. For the year ended March
31, 1997, the Fund incurred fees under the Advisory Agreement and the
Administration Agreement of $410,547 and $156,130, respectively.
Pacific Capital U.S. Treasuries 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. For the year
ended March 31, 1997, the Fund incurred fees under the Advisory Agreement and
the Administration Agreement of $379,291 and $124,062 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. No such
reduction in fees was required during the year ended March 31, 1997.
b) DISTRIBUTION AND SERVICING 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 1% of its average annual assets
represented by Service Shares. No such payments will be made by the Original
Share class. Specific details about each Plan 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 Aquila Distributors, Inc. for such share
distribution.
<PAGE>
4. DISTRIBUTIONS
The Funds declare dividends daily from net investment income and make
payments monthly in additional shares at the net asset value per share or in
cash, at the shareholder's option.
At March 31, 1997, the Cash Fund had a capital loss carryover of
approximately $716,000 which expires at March 31, 2003 and is available to
offset future net realized gains on securities transactions to the extent
provided for in the Internal Revenue Code. To the extent that this loss is
used to offset future realized capital gains, it is probable the gains so
offset will not be distributed.
5. 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.
6. CUSTODIAN FEES
The Funds have negotiated an offset arrangement with their custodian
wherein they receive credit toward the reduction of custodian fees whenever
there are uninvested cash balances. During the year ended March 31, 1997, the
custodian fees of the Cash Fund, the Tax-Free Fund and the Treasuries Fund,
amounted to $15,104, $12,776 and $12,893, respectively. Of these amounts,
$6,461, $1,267 and $7,202, respectively, were offset by such credits. The
Funds could have invested their cash balances in an income-producing asset if
they had not agreed to a reduction in fees under the expense offset
arrangement with the custodian.
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SERVICE SHARES(1)
Year Year Period
Ended Ended Ended ORIGINAL SHARES(2)
March March March Year ended March 31,
31, 31, 31,
1997 1996 1995** 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment
income 0.05 0.05 0.01 0.05 0.05 0.04 0.03 0.03
Less Distributions:
Dividends from net
investment income (0.05) (0.05) (0.01) (0.05) (0.05) (0.04) (0.03) (0.03)
Net Asset Value,
End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.62 5.06 0.85# 4.88 5.32 4.40 2.74 3.15
Ratios/Supplemental
Data
Net Assets, End of
Period ($
millions) 65.8 32.9 3.5 421.4 308.7 486.7 407.1 268.0
Ratio of Expenses
to Average Net
Assets (%) 0.85 0.86 0.83* 0.60 0.60 0.59 0.59 0.61
Ratio of Net
Investment Income
to Average Net
Assets (%) 4.53 4.84 5.26* 4.79 5.24 4.40 2.71 3.13
<CAPTION>
For periods after April 1, 1995, net investment income per share and the
ratios of income and expenses to average net assets without the expense
offset in custodian fees for uninvested cash balances would have been:
<S> <C> <C> <C> <C>
Net investment
income ($) 0.05 0.05 0.05 0.05
Ratio of Expenses
to Average Net
Assets (%) 0.85 0.86 0.60 0.61
Ratio of Net
Investment Income
to Average Net
Assets (%) 4.53 4.84 4.78 5.23
<FN>
(1) New class of shares established on January 20, 1995.
</FN>
<FN>
(2) Designated as the "Original Shares" class of shares on January 20, 1995.
</FN>
<FN>
** For the period from February 1, 1995 (commencement of operations) to
March 31, 1995.
</FN>
<FN>
# Not annualized.
</FN>
<FN>
* Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SERVICE SHARES(1)
Year Year Period
Ended Ended Ended ORIGINAL SHARES(2)
March March March Year ended March 31,
31, 31, 31,
1997 1996 1995** 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment
income 0.03 0.03 0.01 0.03 0.03 0.03 0.02 0.02
Less Distributions:
Dividends from net
investment income (0.03) (0.03) (0.01) (0.03) (0.03) (0.03) (0.02) (0.02)
Net Asset Value, End
of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 2.75 3.11 0.52# 3.00 3.37 2.74 2.02 2.52
Ratios/Supplemental Data
Net Assets, End of
Period ($
millions) 25.5 17.6 1.4 91.0 125.2 138.3 113.9 69.3
Ratio of Expenses
to Average Net
Assets (%) 0.80 0.80 0.77* 0.55 0.54 0.55 0.56 0.54
Ratio of Net
Investment Income
to Average Net
Assets (%) 2.70 2.97 3.22* 2.97 3.32 2.74 1.99 2.52
<CAPTION>
For the years 1994 and 1993, 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 for periods after April 1, 1995,
without the expense offset in custodian fees for uninvested cash balances,
would have been:
<S> <C> <C> <C> <C> <C> <C>
Net Investment
Income ($) 0.03 0.03 0.03 0.03 0.02 0.02
Ratio of Expenses
to Average Net
Assets (%) 0.80 0.80 0.55 0.54 0.58 0.59
Ratio of Net
Investment Income
to Average Net
Assets (%) 2.70 2.97 2.97 3.32 1.97 2.47
<FN>
(1) New class of shares established on January 20, 1995.
</FN>
<FN>
(2) Designated as the "Original Shares" class of shares on January 20,
1995.
</FN>
<FN>
** For the period from February 1, 1995 (commencement of operations)
to March 31, 1995.
</FN>
<FN>
# Not annualized.
</FN>
<FN>
* Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
U.S. TREASURIES CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SERVICE SHARES(1)
Year Year Period
Ended Ended Ended ORIGINAL SHARES(2)
March March March Year ended March 31,
31, 31, 31,
1997 1996 1995** 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment
income 0.04 0.05 0.01 0.05 0.05 0.04 0.03 0.03
Less Distributions:
Dividends from net
investment income (0.04) (0.05) (0.01) (0.05) (0.05) (0.04) (0.03) (0.03)
Net Asset Value, End
of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.50 4.94 0.94# 4.76 5.20 4.20 2.59 2.90
Ratios/Supplemental
Data
Net Assets, End of
Period ($
millions) 83.4 11.8 0.5 65.7 74.0 64.0 91.7 26.1
Ratio of Expenses
to Average Net
Assets (%) 0.79 0.79 0.85* 0.55 0.54 0.54 0.52 0.61
Ratio of Net
Investment Income
to Average Net
Assets (%) 4.43 4.68 5.09* 4.66 5.07 4.04 2.58 2.96
<CAPTION>
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 for periods prior to April 1, 1996, and for periods after April 1,
1995, without the expense offset in custodian fees for uninvested cash
balances, would have been:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment
Income ($) 0.04 0.05 0.01 0.05 0.05 0.04 0.03 0.03
Ratio of Expenses
to Average
Net Assets (%) 0.80 0.88 0.98* 0.56 0.63 0.59 0.52 0.66
Ratio of Net
Investment Income
to Average Net
Assets (%) 4.42 4.60 4.96* 4.65 4.98 3.99 2.58 2.9
<FN>
(1) New class of shares established on January 20, 1995.
</FN>
<FN>
(2) Designated as the "Original Shares" class of shares on January 20,
1995.
</FN>
<FN>
** For the period from February 1, 1995 (commencement of operations)
to March 31, 1995.
</FN>
<FN>
# Not annualized.
</FN>
<FN>
* Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
REPORT OF THE ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
The Annual Meeting of Shareholders of Cash Assets Trust (the "Trust") was
held on March 27, 1997.* At the meeting, the following matters were
submitted to a shareholder vote and approved:
(i) the election of Lacy B. Herrmann, Vernon R. Alden, Arthur K.
Carlson, William M. Cole, Thomas W. Courtney, Richard W. Gushman, II,
Stanley W. Hong, Theodore T. Mason, Russell K. Okata, Douglas
Philpotts, and Oswald K. Stender as Trustees to hold office until the
next annual meeting of the Trust's shareholders or until his or her
successor is duly elected (each Trustee received at least
508,484,124.90 affirmative votes (99.80%); no more than 1,018,091.67
votes were withheld for any Trustee (0.20%)), and
(ii) the ratification of the selection of KPMG Peat Marwick LLP as the
Trust's independent auditors for the fiscal year ending March 31, 1997
(votes for: 508,678,846.57 (99.84%); votes against: 556,751.00
(0.11%); abstentions: 266,618.00 (0.05%); broker non-votes: 0.00
(0.00%)).
- -----------
* On the record date for this meeting, 656,154,884.17 shares of the Trust
were outstanding and entitled to vote. The holders of 509,502,216.57 shares
(77.65%) entitled to vote were present in person or by proxy at the meeting.
FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED)
This information is presented in order to comply with a requirement of
the Internal Revenue Code AND NO CURRENT ACTION ON THE PART OF SHAREHOLDERS
IS REQUIRED.
For the fiscal year ended March 31, 1997, the Federal tax status of the
total amount of dividends paid by each of the investment portfolios
comprising Cash Assets Trust is as follows:
<TABLE>
<CAPTION>
Fund Federal Tax Status
<C> <C>
Pacific Capital Cash Assets Trust Ordinary dividend income
Pacific Capital Tax-Free Cash Assets Trust Exempt-interest dividends
Pacific Capital U.S. Treasuries Cash Assets Trust Ordinary dividend income
</TABLE>
Prior to January 31, 1997, shareholders were mailed IRS Form 1099-DIV
which contained information on the status of distributions paid for the 1996
CALENDAR YEAR.
